As of the Close of the Current Year, Z Corp

question 44

Multiple Choice

As of the close of the current year, Z Corp.holds assets with a fair market value of $1,000,000 and a book value of $800,000.Z has liabilities of $300,000, Z conducts all of its business in State A that imposes a franchise tax at a rate of 4 percent.What is Z's franchise tax liability for the current year?

• A)$40,000
• B)$32,000
• C)$28,000
• D)$20,000
• E)None of the above

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Definitions:

Negative Announcement

A communication that delivers bad news, unfavorable decisions, or adverse information to an audience.

Indirect

A communication approach that is not straightforward or direct, often used to soften a message or to be polite.

Tactful

Showing sensitivity and consideration when dealing with difficult or delicate situations, often to avoid offense.

Claim Message

Communication that asserts a request for action or redress typically in the context of a business or legal matter.