Violet, Inc., has a 2018 $80,000 long-term capital gain included in its $285,000 taxable income. Which of the following is correct?
A) Violet will benefit from an alternative tax on net capital gains computation.
B) Violet's regular tax on taxable income is computed because there is no corporate alternative tax on net capital gains approach.
C) Violet's $80,000 net capital gain is not taxable.
D) Violet's regular tax on taxable income will be greater than its tax using an alternative tax on net capital gain approach.
E) None of the above.
Correct Answer:
Verified
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