Lexington Associates,Inc.is a personal service corporation.This year,Lexington reported $75,000 of taxable income.Which of the following statements regarding Lexington's regular tax liability is true?
A) Regular tax liability will be less than it would have been if Lexington were not a personal service corporation.
B) Regular tax liability will be greater than it would have been if Lexington were not a personal service corporation.
C) Regular tax liability will be the same as it would have been if Lexington were not a personal service corporation.
D) Regular tax liability will be zero.
Correct Answer:
Verified
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