Assume That Clampett,Inc

question 39

Multiple Choice

Assume that Clampett,Inc.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,Inc.has $1,000 of earnings and profits from prior C corporation years and that the corporate tax rate is 35%.Clampett,Inc.'s taxable income would have been $122,000 this year if it had been a C corporation.What is Clampett,Inc.'s excess net passive income tax?

• A) $0.
• B) $8,750.
• C) $26,250.
• D) $35,000.
• E) None of the choices are correct.

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Definitions:

Motion To Suppress

A request made to a judge to exclude certain evidence from trial, typically because it was obtained in violation of the defendant's rights.

Seized Evidence

Items or information gathered through legal authority that are used in court to prove the facts of a case.

Unanimous Agreement

A decision or conclusion reached with the approval and consent of all parties or members involved.

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Judicial proceedings where an individual is accused of committing a crime and the matter is presented before a judge or jury for determination of guilt.