Jordan Is the Sole Proprietor of Adams Company That Reported

question 88

Multiple Choice

Jordan is the sole proprietor of Adams Company that reported net income of $57,000 for the year. During the year he withdrew $11,000 from the business for personal use. Jordan is in the 24% marginal tax bracket. How much income from the above must Jordan include in his taxable income for the year?

• A) $68,000
• B) $57,000
• C) $14,250
• D) $11,000

---

Definitions:

One Best Way

A principle suggesting there is a single most efficient method to execute a particular work process or task.

Chester Barnard

An American business executive and author known for his contributions to management theory and organizational studies, particularly in the area of cooperative systems.

Systems Perspective

An analytical viewpoint focused on understanding the complexities and dynamics of the whole system rather than concentrating on its individual components.

Chaos Theory

Chaos theory deals with complex systems whose behavior appears random or unpredictable, emphasizing the sensitivity of such systems to initial conditions.