Total income tax liability for the corporation

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Reference no: EM13777705

A regular corporation (C Corporations) has taxable income of $1,000 and pays $500 in total dividends from the corporation’s retained earnings to its shareholders during the year. Assume a preferential individual dividend rate of 15%, an individual ordinary income rate of 28%, and a corporate tax rate of 34%. What is the total income tax liability for the corporation and its shareholders for the year?

a. $340

b. $355

c. $415

d. $480

Reference no: EM13777705

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