Saysha Is an Officer of a Local Bank That Merges

question 76

Multiple Choice

Saysha is an officer of a local bank that merges with a national bank, resulting in a change of ownership.She loses her job as a result of the merger, but she receives a cash settlement of $390,000 from her employer under her golden parachute.Her average annual compensation for the past five tax years is $110,000.Calculate any nondeductible excise tax Saysha must pay, if any.

• A)$0.
• B)$56,000.
• C)$110,000.
• D)$280,000.
• E)Some other amount.

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Definitions:

Quantity Demanded

The amount of a product that consumers are willing and able to purchase at a given price over a specified period of time.

Physical Examination

A comprehensive assessment of a person's physical condition, usually conducted by a healthcare professional.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market to restrain prices to a certain level.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.