Dozen Corporation Is Owned Equally by Twelve Unrelated Individuals

question 105

Multiple Choice

Dozen Corporation is owned equally by twelve unrelated individuals.Its taxable income this year is $100,000 and its regular federal income tax liability is $22,250.The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders.The corporation had accumulated earnings and profits of $900,000 at the end of the preceding year.The company has no reasonable needs of the business.The accumulated earnings tax is

• A)$7,913.
• B)$10,913.
• C)$14,550.
• D)$13,188.

---

Definitions:

Geographic Location

The specific physical position or area where something exists or occurs, often defined in terms of latitude and longitude.

Information System

A system comprising people, processes, data, and technology that serves to collect, process, store, and deliver information.

GIS

Geographic Information Systems (GIS) are frameworks for gathering, managing, and analyzing data rooted in the geographic location of the data points.