Natasha Is a Single Taxpayer with $100,000 of Taxable Income

question 80

Multiple Choice

Natasha is a single taxpayer with $100,000 of taxable income.Included in the taxable income is distributions of earnings this year as follows: $$\begin{array} { | l | l | } \hline \text { CE Corp., a C corporation } & \$ 1,000 \\\hline \text { SE Corp., an } S \text { corporation } & \$ 2,000 \\\hline \text { Paris Corp., a foreign corporation } & \$ 3,000 \\\hline\end{array}$$ How much of the $6,000 distribution will be taxed at the 15% tax rate?

• A)$0
• B)$1,000
• C)$3,000
• D)$6,000

---

Definitions:

Bad Debt Expense

An expense account to record uncollectible receivables.

Payroll Activities

The administrative tasks associated with processing employee wages, withholding taxes, and ensuring the accurate calculation of pay.

Payroll Tax

Taxes that are imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

FICA Taxes

Taxes mandated by the Federal Insurance Contributions Act, which fund Social Security and Medicare, split between employers and employees.