If a Company Pays Taxes of 20 Percent on Their

question 32

Multiple Choice

If a company pays taxes of 20 percent on their first $20,000 of pretax income, and 30 percent on any taxable income in excess of $20,000, what is the marginal tax rate if current pretax income is $45,000?

• A) 20 percent
• B) 30 percent
• C) 25 percent
• D) 39 percent

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Definitions:

Continuous Learning

The ongoing process of acquiring new knowledge or skills throughout an individual's life or career for personal or professional development.

Professional Development

The process of improving and increasing capabilities of staff through access to education and training opportunities in the workplace, through external organizations, or through watching others perform the job.

Career Potential

The capacity of an individual to grow and succeed in their professional path, considering their skills, ambitions, and opportunities.

Skills and Capabilities

The abilities and expertise that individuals possess, enabling them to perform specific tasks effectively.