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Cato Corporation is owned by three engineers, all of whom are employed by the corporation. It primarily performs civil engineering activities with respect to construction projects. During the current year, Cato Corporation earned $150,000 of taxable income. Cato has not elected to be taxed under Subchapter S. What is Cato’s current-year regular tax liability?
$52,500
$41,750
$39,250
$51,000
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