Ted, a Cash Basis Taxpayer, Received a $150,000 Bonus in 2017

question 88

True/False

Ted, a cash basis taxpayer, received a $150,000 bonus in 2017 when he was in the 35% marginal tax bracket. In 2018, when Ted was in the 28% marginal tax bracket, it was discovered that the bonus was incorrectly computed, and Ted was required to refund $40,000 to his employer. As a result of the refund, Ted can reduce his 2018 tax liability by $14,000 (.35 × $40,000).

Understand the preference for simplicity over complexity in business communication.

Recognize and correct misplaced or dangling modifiers.

Appreciate the significance of unity and coherence in paragraph structure.

Understand the role of sentence structure in managing emphasis and enhancing readability.

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Definitions:

Managers' Intuition

The innate ability of managers to make decisions or solve problems based on their instincts and experiences rather than only analytical processes.

Probabilities

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Intuitive Thinkers

Individuals who rely on intuition and instinct rather than logical analysis when making decisions.