Crocker and Company (CC)is a C Corporation

question 70

Multiple Choice

Crocker and Company (CC) is a C corporation. For the year, CC reported taxable income of $550,000. 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%

---

Definitions:

Health Care Spending

Financial expenditures related to maintaining, restoring, or enhancing an individual's health.

Physician

A qualified individual who practices medicine, diagnosing and treating diseases, injuries, and other physical and mental impairments.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.

Health Disparities

Differences in health outcomes and access to healthcare services among different population groups, often influenced by socioeconomic factors, race, and ethnicity.