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

---

Definitions:

Key Aspects

The most important or crucial elements or features of a subject or issue.

Sequences of Dependent Activities

A series of actions or steps where the completion of one is reliant on the completion of its predecessor, often used in project planning.

Project Management Tool

Software or systems used to plan, organize, and manage resources, tasks, and timelines in project development.

Interdependence of Activities

A situation in which actions or processes are mutually reliant on each other, meaning the outcome of one is affected by the execution of another.