Katrina owns 100% of Money Corporation's stock. Katrina's basis in the stock is $8,000. Money Corporation has E&P of $40,000. If Money Corporation redeems 60% of Katrina's stock for $50,000, Katrina must report dividend income of

A. $8,000

B. $40,000

C. $50,000

D. $0

E. None of the above

Dodge Inc., has taxable income of $10 million this year. Which is the maximum DPAD tax savings for this C corporation?

A. $0

B. $204,000

C. $210,000

D. $306,000

E. $900,000

Puzzle Corporation has average gross receipts of $5.6 million, $4.6 million, and $4.7 million in 2012, 2013, and 2014, respectively. Puzzle is

A. not subject to the corporate income tax

B. a small corporation with respect to the AMT

C. subject to the AMT

D. not a small corporation with respect to the AMT

E. None of the above