Dozen Corporation Is Owned Equally by Twelve Unrelated Individuals

Multiple Choice

Dozen Corporation is owned equally by twelve unrelated individuals.Its taxable income this year is $100,000 and its regular federal income tax liability is $21,000.The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders.The corporation had accumulated earnings and profits of $900,000 at the end of the preceding year.The company has not documented any business needs for the accumulated profits.The accumulated earnings tax is

A) $19,000.
B) $10,800.
C) $14,800.
D) $19,800.