A Business Generates Profit of $100,000

question 36

Multiple Choice

A business generates profit of $100,000.The owner has a 39.6% marginal tax rate.What amount of corporate and individual income tax will be paid on this profit if the business is a regular corporation and no income is distributed?

• A)Corporate tax,$22,250; individual tax,$39,600
• B)Corporate tax,$22,250; individual tax,$0
• C)Corporate tax,$0; individual tax,$39,600
• D)Corporate tax,$22,250; individual tax,$15,550

Recognize the components and the integral aspects of the point method of job evaluation.

Identify practices that may compromise the integrity of the job evaluation system.

Understand the categorization and significance of compensable factors in job evaluation.

Grasp the complexity and approaches to deriving factor weights in job evaluation.

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Definitions:

Target Cash Balance

The ideal amount of cash that a business aims to maintain to handle day-to-day operations and contingencies.

Transaction Needs

Describes the demand for money for the purpose of conducting daily transactions, such as purchasing goods and services.

Disbursement Float

The time lag between when a check is written and when it is actually deducted from the payer's account.