A corporation has revenue of $350,000 and deductible business expenses of $240,000. What is the federal income tax, before credits?

A) $26,400
B) $22,000
C) $23,100
D) $38,500


C) $23,100

Taxable income is $110,000 ($350,000 - $240,000). The tax liability is $23,100 [.21 × 110,000] .

Business

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