If a Company Has an Extraordinary Gain of $20,000 and a 32

question 177

Multiple Choice

If a company has an extraordinary gain of $20,000 and a 32% tax rate, what is the effect on net income?

• A) Increase of $20,000.
• B) Increase of $13,600.
• C) Increase of $6,400.
• D) No effect.

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Definitions:

Intelligence

A complex trait involving cognitive processes, knowledge, problem-solving abilities, learning capacity, and other intellectual capabilities.

Behavioral Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Heredity

The genetic transfer of characteristics, both mental and physical, across generations.

Environment

The aggregate of surrounding things, conditions, or influences impacting the growth, development, and survival of organisms or systems.