Kyrsten Haas Expects Her S Corporation to Generate a Profit

question 40

Multiple Choice

Kyrsten Haas expects her S corporation to generate a profit of $200,000. What is the effective tax rate on the $200,000 if no cash is distributed? Kyrsten's marginal tax rate on ordinary income is 35%.

• A) 38.6%
• B) 60.8%
• C) 41.03%
• D) 35%

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Definitions:

Assigning Causes

Assigning causes, or attribution, refers to the process of explaining the reasons for behaviors and events, which influences how individuals perceive and react to their environment.

Internal Attribution

The process of assigning the cause of behavior to internal characteristics, traits, or dispositions of the individual rather than to external factors.

Aggressive Person

An individual who exhibits behavior that intends to cause harm or discomfort to others, often as a response to perceived threats or frustration.

External Cause

Factors that originate from outside an individual that can influence or trigger a particular outcome or effect.