My Business Pays Tax on Income, and the Tax Paid

question 3

Multiple Choice

My business pays tax on income, and the tax paid is a linear function of income.If my income is $10420 then the tax owed is $929.60.If my income is $11309 then the tax owed is $1000.72.How much tax do I owe if my income is $11874? ​

• A) $1045.92
• B) $1046.18
• C) $949.92
• D) $950.03

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Definitions:

Conversion Costs

Expenses related to converting raw materials into finished products, typically encompassing labor and overhead costs.

Conversion Costs

Expenses directly related to converting raw materials into finished goods, including labor and manufacturing overhead.

Weighted-Average Method

An inventory valuation method using the weighted average of all items in inventory to determine the cost of goods sold and ending inventory value.

Cost System

A methodical process for recording, measuring, and analyzing costs associated with a company's operations, aiding in financial planning and control.