A Business Generates Profit of $100,000

question 12

Multiple Choice

A business generates profit of $100,000. The owner has a 37% marginal tax rate. What amount of corporate and individual income tax will be paid on this profit if the business is an S corporation and no income is distributed?

• A) Corporate tax, $21,000; individual tax, $37,000
• B) Corporate tax, $21,000; individual tax, $0
• C) Corporate tax, $0; individual tax, $37,000
• D) Corporate tax, $21,000; individual tax, $15,800

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Definitions:

Accidental Poisoning

The unintentional ingestion, inhalation, or absorption through the skin of harmful substances, leading to health complications.

Child-Resistant Containers

Packaging designed to be difficult for children to open, thereby reducing the risk of accidental ingestion of harmful substances.

Restraint Use

The practice of limiting the movement of patients in healthcare settings to prevent harm to themselves or others, using methods like physical restraints or medications.

Nursing Assistive Personnel

Healthcare workers who provide basic care under the supervision of nursing staff, including tasks like bathing, feeding, and assisting patients with mobility.