Coconut, an individual, is the sole shareholder of Tropical Fruit Corporation, a U.S. based corporation. Coconut also ow

[answerhappygod]

Coconut, an individual, is the sole shareholder of Tropical
Fruit Corporation, a U.S. based corporation. Coconut also owns the
office building that serves as corporate headquarters for Tropical
Fruit Corporation. Last year, Tropical Fruit Corporation paid
$3,400,000 annual rent to Coconut for use of the building. Tropical
Fruit Corporation 's marginal tax rate was 21% and Coconut's
marginal tax rate on ordinary income was 37%. Also, Coconut’s
qualified dividend rate was 20%. The revenue agent who audited
Tropical Fruit Corporation's return concluded that the fair rental
value of the office building was $2,550,000. Compute the decrease
in Coconut’s income tax liability as a result of this audit
conclusion.
Group of answer choices
$178,500
$144,500
$25,500
$34,000