Leo owns 100% of four different corporations.During their tax years ending December 31,each corporation had taxable income of $20,000.What is the regular tax liability of each corporation?
A)$3,000
B)$3,863
C)$5,000
D)$6,800

Question

Quizplus · Accepted Answer

The regular tax liability for each corporation is $3,863. This is calculated by multiplying the taxable income of $20,000 by the corporate tax rate of 19.315%.

Leo Owns 100% of Four Different Corporations