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Question
Rita is an individual shareholder of Safe Storage Corporation, an S corporation. Rita is in a lower tax bracket than Safe Storage, which meansa. Rita can pay the lower rate on her corporate income.
b. Rita must pay the higher rate on her corporate income.
c. Safe Storage can pay the lower rate on its income.
d. Safe Storage must pay the higher rate on its income.
Answer
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Fact Pattern 41-1
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Fact Pattern 41-1
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