Bryan Houlberg Expects His C Corporation to Generate a Profit

question 42

Multiple Choice

Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is the effective tax rate on the $200,000 if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?

• A) 21%
• B) 58%
• C) 36.8%
• D) 37%

Identify key biologic agents and understand the significance of public health preparedness for pandemics and bioterrorism threats.

Understand the fundamental payroll concepts, including the difference between salaries and hourly wages.

Identify key written communication and record-keeping tools in a professional setting.

Distinguish between gross and net earnings.

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Definitions:

Income Tax Expense

The amount of money a company is required to pay to the government for the income it has earned during a period.

Capital Budgeting

The process of analyzing and selecting long-term investments that are in line with the goal of maximizing investor wealth.

Straight-Line Depreciation

A process for divvying up the expense of a tangible property across its useful duration in identical yearly amounts.

Net Present Value

A financial metric that calculates the value of a series of future cash flows in today's dollars, taking into account the time value of money.