Rose, Inc, an S Corporation, Has Taxable Income of $14 Million

question 61

Multiple Choice

Rose, Inc., an S corporation, has taxable income of $14 million in 2015. Assume there are two shareholders, each in the 35% tax bracket. What is the maximum total DPAD tax savings for the S corporation shareholders?

• A) None
• B) $168,000
• C) $285,600
• D) $441,000
• E) None of the above

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Definitions:

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A statement of the mathematical operations to be carried out on a combination of numbers and variables.

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An expression containing only one term.

Binomial

An expression containing two terms.

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Terms having the same literal coefficient.