Silver Inc

question 14

Multiple Choice

Silver Inc.is an S corporation.This year it earned $50,000 of taxable income and paid a $10,000 distribution to Daisy,its sole shareholder.Daisy has a marginal tax rate of 25%.Due to the corporation's results and the distribution paid,the IRS will receive total taxes of

• A)$9,000.
• B)$12,500.
• C)$14,000.
• D)$10,000.

---

Definitions:

Job Order Costing

An accounting methodology used for tracking production costs specific to individual jobs or orders, distinguishing each job's material, labor, and overhead costs.

Process Costing

A costing method used where similar goods are mass-produced, and costs are averaged over the units produced.

Paper Manufacturer

A business involved in the production of paper from wood pulp, recycled paper, or other materials.

Process Costing

An accounting method used to allocate costs to units of product in processes involving continuous mass production.