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%