Answer:
Delux Corporation's regular tax liability is:
C. $105,000.
Explanation:
Effective 2018, the new corporate tax rate is 21%. It was cut from 35% previously to 21%. Therefore, calculating the tax liability of Delux Corporation, the taxable income will yield C.'s $105,000 (21% of $500,000). Before 2018, the tax liability would have been B.'s $175,000. This is a reduction of $70,000, which the government lost in taxes to enable businesses to make investments for economic growth.
