Baxter Corporation is a personal service corporation in the legal field.Baxter Corporation has taxable income of $10,000.Baxter Corporation's tax is

Question

Quizplus · Accepted Answer

As a personal service corporation, Baxter Corporation is subject to a flat tax rate of 35% on all taxable income. Therefore, the tax liability for Baxter Corporation would be: 
$10,000 x 0.35 = $3,500. 
Thus, the correct answer is choice C, which is $3,500.

Baxter Corporation Is a Personal Service Corporation in the Legal