Manatee Corporation, a retailer, is owned equally by twelve unrelated individuals. Its taxable income this year...
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Manatee Corporation, a retailer, is owned equally by twelve unrelated individuals. Its taxable income this year is $100,000 and its regular federal income tax liability is $21,000. 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 $200,000 at the end of the preceding year. The company has reasonable needs of the business at year-end of $210,000. The accumulated earnings tax is A) $4,800. B) $9,000. C) $12,800. D) $9,800. Manatee Corporation, a retailer, is owned equally by twelve unrelated individuals. Its taxable income this year is $100,000 and its regular federal income tax liability is $21,000. 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 $200,000 at the end of the preceding year. The company has reasonable needs of the business at year-end of $210,000. The accumulated earnings tax is A) $4,800. B) $9,000. C) $12,800. D) $9,800.
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Step 12 d 9800 The Internal Revenue Service IRS imposes a tax on certain businesses that decide to keep their profits rather than distribute them to t... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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