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Megan graduated from college three years ago and has been working at Sterba Inc. ever since. A conscientious employee, she has consistently received good performance evaluations. She recently found out that a younger colleague, who was just recruited to her team, is drawing a higher salary than she is for doing the same type of work.
-Following this discovery, Megan starts coming to work late and her productivity begins to suffer. Which of the following is most similar to the scenario mentioned above?
Ordinary Income
Income earned from normal business operations or employment, subject to regular income tax rates, excluding capital gains or dividends.
Service Partner
A business entity or individual that provides services to another company under a partnership or contractual agreement.
FMV
Fair Market Value, the estimated price at which an asset would change hands between a willing buyer and seller, both having reasonable knowledge and not under compulsion.
Basis
The initial value or purchase price of an asset for tax purposes, used to calculate the gain or loss on the sale of that asset.
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