Mr Ohno Owns and Operates a Part-Time Service Business That

question 69

Essay

Mr Ohno owns and operates a part-time service business that generates $80,000 annual taxable income. His federal tax rate on this income is 17%. Because of recent legislation, this rate will increase to 25% next year.
A. Based on a static forecast, how much additional revenue will the federal government collect from Mr Ohno next year?
B. How much additional revenue will the federal government collect if Mr Ohno decides to work fewer hours and consequently earns only $50,000 next year?

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Definitions:

Core Principles

Fundamental beliefs or values that serve as the foundation for an organization, individual's actions, or the functioning of a system.

Professional Selling

The activity or profession of selling products or services in a manner that upholds high standards of business ethics, customer service, and product knowledge.

Need-Satisfaction Presentation

A flexible, interactive type of presentation in which a prospect’s needs are thoroughly discussed.

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The initial stage in the buying process where a potential buyer becomes aware of a need or problem that requires a solution.