A Small Firm Allocates 28% of Its Gross Profits into an Account

question 54

Multiple Choice

A small firm allocates 28% of its gross profits into an account for insurance. Last year, the firm's gross profit was $400,000. What amount was deposited into the insurance account?

• A)$100,000
• B)$108,000
• C)$109,500
• D)$112,000
• E)$128,000

---

Definitions:

Article III

The section of the United States Constitution that establishes the judicial branch, including the Supreme Court and lower courts.

Judicial Review Origins

Refers to the historical development and legal acknowledgment that courts have the power to review and nullify actions or laws that are deemed unconstitutional.

Constitutional Basis

The fundamental principles or established precedents according to which a state or other organization is governed, as outlined in its constitution.

Judicial Power

The authority vested in courts and judges to interpret and apply the law, adjudicate legal disputes, and in some cases, enforce or nullify laws based on their constitutionality.