2018 Tax Year

Mrs. Flores, who has a 37% marginal tax rate, is the sole shareholder and CEO of Fast Inc. She also holds a $1,000,000 interest-bearing note issued by Fast. The corporations current-year financial records show the following:

Sales revenue $ 1,879,000

Mrs. Floress salary (160,000)

Other operating expenses (414,000)

Interest paid on Mrs. Floress note (60,000)

Dividend paid to Mrs. Flores (100,000)

Compute Fast Incs taxable income.

Select one:

a. $1,145,000

b. $1,245,000

c. $1,305,000

d. $1,465,000