Question : Jay owns 100% of Kaye Company. In 2020, Kaye Company recognizes a long-term capital gain (LTCG) of $100,000. Kaye Company has no other income or loss. Assume that Jay (an individual) is in...

Question: Jay owns 100% of Kaye Company.  In 2020, Kaye Company recognizes a long-term capital gain (LTCG) of $100,000.  Kaye Company has no other income or loss.  Assume that Jay (an individual) is in the 37% tax bracket and has no recognized capital gains or losses in 2020.

How much tax will Kaye Company owe on the $100,000 LTCG assuming that Kaye is a corporation?

My Answer:
Kaye Company will pay long term capital gain tax on the entire $100,000 at 15%, so 15,000

My reasoning - Why I think its 15% and not 20% as other materials state on the site is because the rate for most long-term capital gains was reduced from 20 percent to
15 percent; further, qualified dividends were taxed at this same 15-percent rate under the 2017 tax policy.