Domino, Inc., is an exempt medical organization. Solitare, Inc., a sporting goods retailer, is a wholly owned subsidiary of Domino. Domino inherited the Solitare stock last year from a major benefactor of the medical organization. Solitare' s taxable income is $825,000. Solitare will remit all of its earnings, net of any taxes, to Domino to support the exempt purpose of the parent.

Is Solitare subject to federal income tax? If so what is the percentage they are subject too? A) 21% B) 34% C) 35% d) 41%

explain why it is not 21%? tax years beginning after 2017, the Tax Cuts and Jobs Act (P.L. 115-97) replaced the graduated corporate tax structure with a flat 21% corporate tax rate.