Andrews Corporation Owns All of the Outstanding Stock of Zeta

question 49

Multiple Choice

Andrews Corporation owns all of the outstanding stock of Zeta Inc.The two corporations do not file a consolidated income tax return.This year,each corporation recorded $200,000 of taxable income.What is the regular tax liability of each corporation?

• A)$68,000
• B)$61,250
• C)$122,500
• D)$136,000

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Definitions:

Intense Hunger

A strong, overwhelming desire or need to eat.

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A slower-than-normal rate at which the body converts food and oxygen into energy.

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A serious eating disorder marked by binging, followed by methods to avoid weight gain.

Binge Eating Disorder

A psychological disorder characterized by recurrent episodes of eating large quantities of food, usually quickly and to the point of discomfort, accompanied by a feeling of loss of control.