Manatee Corporation,a Retailer,is Owned Equally by Twelve Unrelated Individuals

question 118

Multiple Choice

Manatee Corporation,a retailer,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 $200,000 at the end of the preceding year.The company has reasonable needs of the business at year-end of $210,000.The accumulated earnings tax is

• A)$413.
• B)$3,413.
• C)$4,550.
• D)$7,735.

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Definitions:

Identity

The distinguishing character or personality of an individual; one's sense of self.

Anxiety Disorder

A psychological condition marked by intense sensations of stress, nervousness, or dread that significantly disrupt an individual's everyday functions.

Ambiguous

Something that can be understood in more than one way or is not explicitly defined, leading to uncertainty or confusion.

Neutral Word

Neutral word refers to vocabulary that does not convey strong emotions and is not biased towards positive or negative connotations.