Amber Company Has $100,000 in Net Income in 2013 Before

question 25

Essay

Amber Company has $100,000 in net income in 2013 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 33% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations.)

Recognize how firms make decisions on output supply and production methods.

Understand the role of market price of output, input prices, and technology in determining production decisions.

Know the difference between long run and short run in economic terms.

Understand the goal of firms to maximize total revenue.

---

Definitions:

Assertive

The quality of being confidently aggressive or self-assured in stating one's opinions without being aggressive.

Unfazed by Stress

Remaining calm and not being easily disturbed or stressed by challenging situations.

High-Pressure Circumstances

Scenarios or situations characterized by elevated stress levels, urgency, or demanding conditions that require immediate attention or action.

Religious Services

Ceremonial acts of worship and devotion observed within a religious tradition.