Baxter Corporation is a personal service corporation. Baxter Corporation has taxable income of $10,000. Baxter Corporation's tax is

Name: Baxter Corporation is a personal service corporation. Baxter Corporation has taxable income of $10,000. Baxter Corporation's tax is
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Question

Quizplus · Accepted Answer

As a personal service corporation, Baxter Corporation is subject to a flat tax rate of 21% on all of its taxable income. Thus, the tax liability for Baxter Corporation would be $10,000 x 21% = $2,100. Therefore, the correct answer is C.

Baxter Corporation Is a Personal Service Corporation