Formed in 2009, the ABC Ltd

question 78

Multiple Choice

Formed in 2009, the ABC Ltd. had an operating loss of $95,000, with projected taxable income of $70,000 in 2010, $55,000 in 2011, and $80,000 in 2012. What will be the corporate tax liability in
2012? Assume that ABC is a CCPC in Quebec with a combined federal and provincial corporate income tax rate of 19%.

• A) $15,200.00
• B) $16,250.00
• C) $17,700.00
• D) $18,500.00

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the actual amount they do pay.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Market Equilibrium

The point at which the quantity demanded and the quantity supplied of a product are equal, leading to a stable market price.

Producer Surplus

Producer Surplus is the difference between what producers are willing to accept for a good versus what they actually receive, highlighting the benefit to producers from higher market prices.