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Artco IncIs a C Corporation

Question 117

Multiple Choice

Artco Inc.is a C corporation.This year it earned $50,000 of taxable income and paid a $10,000 distribution (dividend) to Lily,its sole shareholder.Lily has a marginal tax rate of 25%.Due to the corporation's results and the distribution paid,the IRS will receive total taxes of


A) $9,000.
B) $12,500.
C) $14,000.
D) $10,000.

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