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Purrfect Pet Industries' Income Before Taxes Is $800,000 and Its

Question 30

Multiple Choice

Purrfect Pet Industries' income before taxes is $800,000 and its tax rate is 40%.Purrfect Pet included $50,000 of fully deductible inter-corporate dividends received in the $800,000.There are no other book-tax differences.What is the income tax liability for Purrfect Pet?


A) $320,000
B) $340,000
C) $280,000
D) $300,000

Correct Answer:

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