A Regular Corporation and a Personal Service Corporation Each Have

A regular corporation and a personal service corporation each have taxable income of $20,000 for the 2012 calendar year.Ignoring the alternative minimum tax provisions, which one of the following statements is true regarding the Federal income tax liabilities of these two corporations?

A) Both corporations will have the same tax liability before credits or prepayments.
B) The regular corporation will have a slightly lower tax liability before credits or prepayments.
C) The personal service corporation will have a slightly lower tax liability before credits or prepayments.
D) The regular corporation's tax liability will be exactly $2,000 less than the tax liability of the personal service corporation.
E) The regular corporation's tax liability will be less than half that of the personal service corporation.