Larry and Laureen own LL Legal Services Corporation equally.The two owners are practicing attorneys employed by the corporation.The only business activity of the entity is the provision of legal services.During the current tax year,the corporation's taxable income is $100,000.What is the corporation's income tax liability?

Question

Quizplus · Accepted Answer

The corporation's income tax liability is calculated using the corporate tax rate. For the tax year in question, the flat corporate tax rate is 21%. Therefore, the tax liability on $100,000 of taxable income is $100,000 * 21% = $21,000. However, none of the provided options match this calculation, indicating a possible error in the options or the tax rate used.

Larry and Laureen Own LL Legal Services Corporation Equally