A business generates profit of $100,000.The owner has a 39.6% marginal tax rate.What amount of corporate and individual income tax will be paid on this profit if the business is a regular corporation and no income is distributed?
A)Corporate tax,$22,250; individual tax,$39,600
B)Corporate tax,$22,250; individual tax,$0
C)Corporate tax,$0; individual tax,$39,600
D)Corporate tax,$22,250; individual tax,$15,550

Question

Quizplus · Accepted Answer

A regular corporation pays corporate tax on its profits, and if no income is distributed, there is no individual tax.

A Business Generates Profit of $100,000