Mrs. Ford, who has a 37% marginal tax rate, is the sole shareholder and CEO of Fast Inc. She also holds a $1 million interest-bearing note issued by Fast. The corporation's current-year financial records show the following:    Sales revenue$1,879,000 Mrs. Ford's salary (160,000)Other operating expenses (414,000)Interest paid on Mrs. Ford's note (60,000)Dividend distributed to Mrs. Ford's (100,000)Compute Fast's taxable income.

A. $1,245,000
B. $1,145,000
C. $1,465,000
D. $1,305,000


Answer: A

Business

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