A manufacturing corporation is owned equally by 10 unrelated individuals. Its taxable income this year is
$100,000. The company claims a $15,000 dividends- received deduction and pays $25,000 dividends to its shareholders. The corporation had accumulated earnings and profits of $220,000 at the end of the preceding year. The company's reasonable needs of the business at the end of the year is $240,000. What is the amount of the accumulated earnings tax and its total income tax liability?

Question

Quizplus · Accepted Answer

The Answer of A manufacturing corporation is owned equally by 10 unrelated individuals. Its taxable income this year is
$100,000. The company claims a $15,000 dividends- received deduction and pays $25,000 dividends to its shareholders. The corporation had accumulated earnings and profits of $220,000 at the end of the preceding year. The company's reasonable needs of the business at the end of the year is $240,000. What is the amount of the accumulated earnings tax and its total income tax liability?

A Manufacturing Corporation Is Owned Equally by 10 Unrelated Individuals