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Assume Mr. Jones successfully convert his business to a corporation. This corporation has $100,000 of taxable income from operations plus $5,000 of interest income and

Assume Mr. Jones successfully convert his business to a corporation. This corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $100,000 of dividend income. During the previous year, the company paid dividends equal to $8,000. What is its tax liability at 21% corporate tax rate?

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