Dozen Corporation Is Owned Equally by Twelve Unrelated Individuals

question 105

Multiple Choice

Dozen Corporation is owned equally by twelve unrelated individuals.Its taxable income this year is $100,000 and its regular federal income tax liability is $22,250.The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders.The corporation had accumulated earnings and profits of $900,000 at the end of the preceding year.The company has no reasonable needs of the business.The accumulated earnings tax is

• A)$7,913.
• B)$10,913.
• C)$14,550.
• D)$13,188.

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Definitions:

High-Fiber Diet

A diet rich in dietary fibers found in fruits, vegetables, whole grains, and legumes, beneficial for digestive health and preventing constipation.

Low-Sodium Diet

A dietary plan that limits the intake of sodium, beneficial for individuals with certain health conditions like high blood pressure.

Bland Diet

A diet consisting of foods that are mild in flavor and easy on the stomach, typically recommended for people with gastrointestinal issues.

High-Calorie, High-Protein Diet

A nutritional plan that significantly incorporates foods rich in calories and proteins, often recommended for individuals needing to gain weight or muscle mass.