Dozen Corporation Is Owned Equally by Twelve Unrelated Individuals

question 141

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 $21,000. 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) $19,800.
• B) $10,800.
• C) $14,800.
• D) $19,000.

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Definitions:

Circadian Rhythm

The approximately 24-hour cycle in the physiological processes of living beings, influencing sleep-wake patterns, hormone release, and other bodily functions.

Paradoxical Sleep

Another term for REM (Rapid Eye Movement) sleep, characterized by the paradox of the brain being highly active while the body is immobilized.

Retina

A light-sensitive layer at the back of the eyeball that contains cells responsive to visual stimuli.

Circadian Rhythm

A 24-hour internal clock cycle that regulates physiological and behavioral processes in living organisms.