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

question 59

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 the above

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Definitions:

Encode

To transform sensory input into a form that is more readily processed.

Sensory Input

Information gathered by the senses such as sight, sound, touch, taste, and smell, which gets processed by the brain to make sense of the world.

Moral Realism

The philosophical belief that there are objective moral values which are independent of human opinion or belief.

Authority

The power or right to give orders, make decisions, and enforce obedience.