13. The tax system Provisions of the U.S. Tax Code for Corporations and Individuals In general, is the U.S. federal tax sy The applicable tax rate for S corporations is based on the: stem progressive or regressive? O Progressive O Regressive Corporate tax rate O Stockholders' individual tax rates Cute Camel Woodcraft Company owns 340,000 shares in the Lazy Zebra Furniture. If Lazy Zebra has 4DD,000 shares of common stock outstanding, can Cute Camel filea single income tax return that reports the incomes and expenses of both companies? No, because the U.S. Tax Code requires cute camel to own 100% of Lazy Zebra's outstanding stock to file a consolidated return. O Yes, because Cute Camel Woodcraft Company's ownership stake in Lazy Zebra is greater than or equal to 70%, as required by the U.S. Tax Code. O Yes, because Cute Camel Woodcraft Company's ownership stake in Lazy Zebra is greater than or equal to 80%, as required by the U.S. Tax Code. Assume that the tax rate on orporate taxable income up to $50,000 is 15%, and 25% for income levels between 50,001 and $75,000. If the clumsy Chihuahua Music Company has a taxable income of $55,000, then it has a tax iability of and an average tax rate of Suppose you want to invest $10,000. You have two options: Option #1: Invest in unicipal bonds with an expected return of 11.00%, or Option #2: Invest in the oorporate bonds of Jefferson & Alexander Inc. which are offering an expected return of 14.85% Assume that your decision is based solely on your tax situation. If everything else is the same for both bonds, at what tax rate would you be indifferent between these twoband investments? 24.18% 28.60% 26.00% 33.28% O For your personal portfolio, you purchased 1,000 shares of a foreign manufacturing company for $47.00 per shane and sold it for $5B.00 per share after 18 months. How wil your gain or loss be treated when you file your taxes? O As a capital gain that will be taxed at the current ordinary income tax rate O As a capital gain that will be taxed at the capital gains tax rate