A business generates profit of $100,000. The owner has a 37% marginal tax rate. What amount of corporate and individual income tax will be paid on this profit if the business is an S corporation and no income is distributed?
A. Corporate tax, $0; individual tax, $37,000
B. Corporate tax, $21,000; individual tax, $0
C. Corporate tax, $21,000; individual tax, $37,000
D. Corporate tax, $21,000; individual tax, $15,800
Answer: A
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