Ramirez Corporation Is Subject to Income Tax Only in State

question 42

Multiple Choice

Ramirez Corporation is subject to income tax only in State A.Ramirez generated the following income and deductions. $$\begin{array} { l r } \text { Federal taxable income } & \$ 500,000 \\\text { State A income tax expense } & 45,000 \\\text { Depreciation allowed for Federal tax purposes } & 300,000 \\\text { Depreciation allowed for state tax purposes } & 250,000\end{array}$$ ? Federal taxable income is the starting point in computing A taxable income.State income taxes are not deductible for A tax purposes.Ramirez's A taxable income is:

• A)$495,000.
• B)$500,000.
• C)$545,000.
• D)$595,000.

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Definitions:

Income Inequality

describes the uneven distribution of income and wealth across different participants in an economy, leading to economic disparity.

Affected Groups

Populations or segments of society that experience impacts, either positive or negative, due to specific policies, events, or changes in environmental or economic conditions.

Lorenz Curve

A graphical representation used to show the distribution of income or wealth within an economy, illustrating the degree of inequality.