Nora Is the CEO of the Publicly Traded Micro Tech

question 109

Multiple Choice

Nora is the CEO of the publicly traded Micro Tech Corporation. The company paid her a salary of $1,030,000 and made mortgage payments of $30,000 on her behalf. How much is deductible as compensation expense?

• A)$- 0 -
• B)$ 510,000
• C)$1,000,000
• D)$1,060,000
• E)$1,030,000

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Definitions:

Horizontal Demand Curve

Represents a situation in economics where the demand for a good is extremely sensitive to changes in price, indicative of perfect elasticity.

Oligopolist

A company operating within an oligopoly market structure, where a small number of firms have a large majority of market share and can influence prices and competition.

Non-price Competition

A strategy by businesses to attract customers through methods other than lowering prices, such as quality improvement, marketing, or product differentiation.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry.