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Nathan is a shareholder who owns more than 2% of Handy Hot Dogs, Inc., a restaurant organized as a C corporation. During the year, Nathan

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Nathan is a shareholder who owns more than 2% of Handy Hot Dogs, Inc., a restaurant organized as a C corporation. During the year, Nathan worked part-time for the corporation and recelved $16,000 in wages. In addition, Nathan recelved $18,000 in dividends, based on his ownership share. Choose the response that correctly describes how Handy Hot Dogs, Inc. will report Nathan's wages and dividends on their tax return. The corporation will: Deduct both the wages and the amount distributed as dividends. Deduct the amount distributed as dividends, but not the wages. Deduct the wages and pay a flat tax rate of 21% on the amount distributed as dividends. Pay a flat tax rate of 21% on both the $16,000 in wages and the $18,000 in dividends

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