Bryan Houlberg Expects His C Corporation to Generate a Profit

question 94

Multiple Choice

Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is the effective tax rate on the $200,000 if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 35%?

• A) 35%
• B) 57.43%
• C) 41.03%
• D) 39%

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Definitions:

Lower Control Limit

A statistic used in process control that represents the lowest acceptable boundary for process variation.

ISO 9001:2015

An international standard that specifies requirements for a quality management system (QMS).

Quality System

A structured framework for managing and improving all aspects of an organization's operations, ensuring consistency, efficiency, and satisfaction.

Customer Expectations

The set of assumptions, desires, and needs that a customer has regarding a product or service.