A Corporation Is a Legal Entity Created and Recognized by Federal

question 8

True/False

A corporation is a legal entity created and recognized by federal law.

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Definitions:

W-2

The form that an employer must send to an employee and the IRS at the end of the year, which reports the employee's annual wages and taxes withheld.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in net profit or loss.

Tax Bracket

Where each line of the tax schedule has an increasing percent based on increasing income.

Taxable Income

Income subject to tax, after deductions and exemptions, according to the law.