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X Co. is subject to a 27% combined tax rate and earns income before interest of $2,000. A shareholder lends $20,000 to the corporation at

X Co. is subject to a 27% combined tax rate and earns income before interest of $2,000. A shareholder lends $20,000 to the corporation at a rate of 10%. What is the combined corporate and shareholder tax?

a) $540

b) $940

c) $0

d) $1,000

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