A Business Generates Profit of $100,000

question 64

Multiple Choice

A business generates profit of $100,000. The owner has a 35% 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, $35,000
• B) Corporate tax, $22,250; individual tax, $0
• C) Corporate tax, $0; individual tax, $35,000
• D) Corporate tax, $22,250; individual tax, $27,213

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Definitions:

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An individual, group, or organization that has an interest or concern in an organization or project and can affect or be affected by the organization's actions, objectives, and policies.

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