Which of the Following Statements Is Incorrect Regarding the Taxation

question 53

Multiple Choice

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

• A) The highest corporate marginal tax rate is 39%.
• 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) Similar to those applicable to individuals, the marginal tax rate brackets for corporations are adjusted for inflation.
• E) None of the above.

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Definitions:

Employees

Individuals who are hired by a business or organization to perform specific duties in exchange for compensation such as wages, salary, or other benefits.

Agents

Representatives authorized to act on behalf of another person or entity, often in business or legal matters.

Minor

An individual under the age of majority, which is legally recognized as an adult, typically 18 or 21 years old in most jurisdictions.

Legally Act

To perform actions or conduct oneself in a manner that is in accordance with the law.