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:

Planning Presentations

The process of organizing and preparing the content and delivery of a presentation.

Business Messages

Formal communication conveyed through various mediums within a professional setting.

Select The Medium

The process of choosing the most appropriate channel or form of communication to convey a message effectively to the intended audience.

Knowing What

Refers to the understanding or knowledge of specific information or principles.