Flycatcher Corporation,a C Corporation,has Two Equal Individual Shareholders,Nancy and Pasqual

question 33

Multiple Choice

Flycatcher Corporation,a C corporation,has two equal individual shareholders,Nancy and Pasqual.In the current year,Flycatcher earned $100,000 net profit and paid a dividend of $10,000 to each shareholder.Regardless of any tax consequences resulting from their interests in Flycatcher,Nancy is in the 33% marginal tax bracket and Pasqual is in the 15% marginal tax bracket.With respect to the current year,which of the following statements is incorrect?

• A)Flycatcher cannot avoid the corporate tax altogether by distributing all $100,000 of net profit as dividends to the shareholders.
• B)Nancy incurs income tax of $1,500 on her dividend income.
• C)Pasqual incurs income tax of $1,500 on his dividend income.
• D)Flycatcher pays corporate tax of $22,250.
• E)None of the above.

Identify the characteristics and influences of postmodern culture.

Comprehend the historical and cultural dominance of the English language globally.

Understand the concepts of cultural homogeneity and heterogeneity in the context of globalization.

Recognize the importance of rites of passage and public acknowledgments in cultural and social contexts.

---

Definitions:

Divisional Departmentation

An organizational structure where divisions are formed based on products, services, markets, or geographic locations.

Matrix Departmentation

Is a combination of functional and divisional patterns wherein an individual is assigned to more than one type of unit.

Total Quality Management

An ongoing process of improvement involving all members of an organization to enhance quality and meet or exceed customer expectations.

Participative Management

A management style where employees at all levels are encouraged to contribute ideas towards identifying and solving problems, making decisions, and improving productivity.