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In 2016, Godfrey Received a $50,000 Sales Commission on a Long-Term

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In 2016, Godfrey received a $50,000 sales commission on a long-term contract. But in 2017, the customer filed bankruptcy and Godfrey's employer was not able to collect from the customer. Under the bonus agreement, Godfrey was required to repay the employer $20,000 of the bonus. Godfrey was in the 35% marginal tax bracket in 2016 but he is in the 25% marginal tax bracket in 2017.


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Billions

A numeral representing the number 1,000,000,000 or a vast quantity of something.

Patent

A document that grants the holder exclusive rights on an invention or process for a specified period of time, currently 20 years.

Exclusive Rights

Specific rights granted to an individual or entity, allowing them to use, produce, or sell something without interference or replication by others.

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