41) 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 $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 $900,000 at the end of the preceding year. The company has not documented any business needs for the accumulated profits. The accumulated earnings tax is A) $14,800. C) $10,800. B) $19,800. D) $19,000.
41) 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 $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 $900,000 at the end of the preceding year. The company has not documented any business needs for the accumulated profits. The accumulated earnings tax is A) $14,800. C) $10,800. B) $19,800. D) $19,000.
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 65IIP
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![41) 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 $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 $900,000 at the end of the preceding year. The company
has not documented any business needs for the accumulated profits. The accumulated earnings
tax is
D) $19,000.
A) $14,800.
12) 0 corporation
B) $19,800.
C) $10,800.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F584fc518-737e-46f5-870e-2620c18ba527%2F1959b462-0656-4a7d-a64d-beb925ec21f4%2Fbh9uf7p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:41) 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 $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 $900,000 at the end of the preceding year. The company
has not documented any business needs for the accumulated profits. The accumulated earnings
tax is
D) $19,000.
A) $14,800.
12) 0 corporation
B) $19,800.
C) $10,800.
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