Assume That Clampett, Incorporated, Has $200,000 of Sales, $150,000 of Cost

question 68

Multiple Choice

Assume that Clampett, Incorporated, has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of interest income, and $40,000 of dividends. Assume that Clampett, Incorporated, never operated as a C corporation and that the corporate tax rate is 21 percent. What is Clampett, Incorporated's excess net passive income tax?

• A)$0
• B)$21,000
• C)$75,000
• D)$100,000
• E)None of the choices are correct.

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Definitions:

Longitudinal

An approach to research that involves repeated observations of the same variables over short or long periods of time to detect changes.

Experimental

describes a research methodology involving the manipulation of variables to test a hypothesis in a controlled environment.

Sequential

Relating to or forming a sequence, where items are ordered according to a logical or natural progression.

Scientific Method

A systematic approach to investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge.