Mr Blau Structured an Income-Generating Transaction So That the $90,000

question 57

Multiple Choice

Mr. Blau structured an income-generating transaction so that the $90,000 income and cash flow shifted to Mr. Blau's sister, Kim. If Mr. Blau's marginal tax rate is 35%, and Kim's tax rate is 12%, compute the tax savings from the income shift.

• A) $0
• B) $10,800
• C) $31,500
• D) None of these choices are correct

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Definitions:

Implicit Memories

Memories that influence our behaviors and knowledge without conscious awareness, typically acquired through repetition and practice.

Selective Attention

The ability to direct mental resources to relevant information in order to process that information further, while also ignoring irrelevant information.

Information Processing

A psychological theory that describes the process through which humans encode, store, and retrieve information.

Explicit Memory

The type of memory that involves conscious recollection of previous experiences and information.