Dozen Corporation Is Owned Equally by Twelve Unrelated Individuals

Question 71
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.