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Bulldog Corporation reponted taxable income of $905,000 this year, bofore any deduction for any payment to its sole shareholder and employee. Rojas, Bullidog chose to
Bulldog Corporation reponted taxable income of $905,000 this year, bofore any deduction for any payment to its sole shareholder and employee. Rojas, Bullidog chose to poy a bonus of $185,000 to Rojas of year end. The bonus meets the requirements to be "reasonable" and is therefore deductible by Bulldog. Rojas is subject to a marginal tax rate of 35 percent on the bonus. What is the income tox imposed on the corporate income earned by Butidog and the income tax on the bonus paid to Rojos? Answer is complete but not entirely correct
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