A Business Generates Profit of $100,000

question 55

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 an S 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

---

Definitions:

Clarify

To make a statement or message clear and understandable, removing ambiguities.

For Example

A phrase used to introduce an illustrative example or cases that help explain or clarify a statement.

Digital Communication

The exchange of information through electronic means, utilizing technologies such as email, social media, and messaging apps.

Writing Skills

The ability to express ideas and communicate information effectively through written text.