Crocker and Company (CC)is a C Corporation

question 27

Multiple Choice

Crocker and Company (CC) is a C corporation. For the year, CC reported taxable income of $564,500. At the end of the year, CC distributed all its after-tax earnings to Jimmy, the company's sole shareholder. Jimmy's marginal ordinary tax rate is 37 percent and his marginal tax rate on dividends is 23.8 percent, including the net investment income tax. What is the overall tax rate on Crocker and Company's pretax income?

• A)18.8%.
• B)23.8%.
• C)21%.
• D)39.8%.
• E)44.8%.

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Definitions:

Motor Cortex

The motor cortex is a region of the brain involved in the planning, control, and execution of voluntary movements.

Frontal Lobes

Regions of the brain located at the front of each cerebral hemisphere, associated with reasoning, motor skills, higher level cognition, and expressive language.

Voluntary Movements

Movements that are consciously controlled by the brain, involving coordination and motor skills.

Parietal Lobes

Regions of the brain located behind the frontal lobes, involved in processing sensory information such as touch, temperature, and body position.