Which of the Following Is Not an Acceptable Method of Determining

question 41

Multiple Choice

Which of the following is not an acceptable method of determining the required annual payment of federal income tax for corporations?

• A)100 percent of the prior year's tax liability (with a few exceptions).
• B)100 percent of the current year's tax liability.
• C)100 percent of the estimated current-year tax liability using the annualized income method.
• D)All of the choices are acceptable methods of determining the required annual payment of federal income tax for corporations.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level at a specific time.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale, holding other factors constant.

Equilibrium Price

The market price at which the supply of an item equals the quantity demanded.

Equilibrium Quantity

The volume of goods or services that are both presented and required at the price where supply meets demand in a market.