Which of the Following Statements Is Incorrect Regarding the Taxation

question 18

Multiple Choice

Which of the following statements is incorrect regarding the taxation of C corporations?

• A)Similar to those applicable to individuals, the marginal tax rate brackets for corporations are adjusted for inflation.
• B)Taxable income of a personal service corporation is taxed at a flat rate of 35%.
• C)A tax return must be filed whether or not the corporation has taxable income.
• D)The highest corporate marginal tax rate is 39%.
• E)None of the above.

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Definitions:

Price Elasticity

A measure indicating how much the quantity demanded or supplied of a good changes in response to a change in its price.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Decreases

A reduction in quantity, size, or intensity of something.

Cross-Price Elasticity

A measure of how much the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between the goods (substitutes or complements).