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Corporation A owns a small percentage of the stock of corporation B. Corporation B pays corporation A $100,000 in dividends. Corporation A pays tax at

Corporation A owns a small percentage of the stock of corporation B. Corporation B pays corporation A $100,000 in dividends. Corporation A pays tax at a 21% rate and is allowed to exclude from taxable income 50% of dividends received from other firms. The incremental taxes that Corporation A must pay on the dividends received are ________.

A. $0

B. $21,000

C. $10,500

D. $1,050

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