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This quesiton is wrong and the website don't allow you to make comments to tell...

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Accounting

This quesiton is wrong and the website don't allow you to make comments to tell the correct answer. The answer is wrong because the dividend received deduction (DRD) is not factored in. Using 20% or less ownership in the company, the DRD is 50% of the dividend income. Which means the taxes due is only on 50% of the $74,600 which is $37,300 and the correct answer would be $7,833 vice the $15,666 the website shows. I hope this helps.
Question: Matthews, Incorporated, received total dividend income of $74,600 this year from the various stocks it owns. The firms tax rate is 21 percent. How much tax does the firm owe on this income?

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