Schatz Corporation Generated $8,083,000 Ordinary Business Income and Recognized a $73,900

Multiple Choice

Schatz Corporation generated $8,083,000 ordinary business income and recognized a $73,900 net capital gain on the sale of assets. Which of the following statements is true?

A) Schatz must pay tax at the regular corporate rate on $8,156,900 taxable income.
B) Schatz must pay tax at the regular corporate rate on $8,083,000 taxable income. The $73,900 capital gain is eligible for a preferential tax rate.
C) Schatz's net capital gain results in a permanent book/tax difference.
D) None of these choices are true.