P Corporation is a publicly held corporation which owns 10% of S Corporations stock. S...
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Accounting
P Corporation is a publicly held corporation which owns 10% of S Corporations stock. S Corporation has taxable income of $100,000 and distributes a $50,000 dividend to P. P has taxable income of $1,000,000 before the dividend.
a. Ps corporate income tax is $345,100 on $1,015,000 of taxable income. S Corporation tax is $22,250
b. Ps corporate income tax is $345,100 and Ss corporate income tax is $34,000.
c. P Corporation owes AMT.
d. None of the above
***Explain answer.
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