Choose the answer with explanation: Question 97) Keith, age 17, is a dependent of his parents. During 2014, he received $3,000 of dividend income. The parent's marginal rate is 28% and Keith's rate is 10%. Keith's tax is A) $300. B) $150. C) $280. D) None of the above. 98) A corporation has revenue of $350,000 and deductible business expenses of $240,000. What is the federal income tax, before credits? A) $16,500 B) $22,500 C) $26,150 D) $42,900 99) Ray is starting a new business and trying to decide between a C corporation, S corporation and partnership. Which of the following statements regarding his decision is correct? A) An S corporation owner must pay income taxes only on the salary received. B) A partner in a partnership is taxed on his or her share of partnership income. C) A shareholder in a C corporation is taxed on his or her share of corporate income. D) S corporations pay taxes on their current year income. 100) If an individual with a marginal tax rate of 15% has a long-term capital gain, it is taxed at A) 0%. B) 20%. C) 10%. D) 15%. 101) Lila and Ted are married and have AGI of $332,000 in 2014. They had their first children this year, twins. Lila and Ted will be allowed a deduction for personal and dependency exemptions of A) $7,900. B) $15,800. C) $12,324. D) $3,476.