Figure 2-2 -Refer to Figure 2-2.Devin Works as an Attorney for a Attorney

question 190

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs.Juan owns office buildings and rents his buildings to companies in exchange for rent payments.If Devin's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram,then Juan's income is represented by a flow of dollars

• A)from Box A to Box C.
• B)from Box C to Box A.
• C)from Box B to Box D.
• D)from Box D to Box B.

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Definitions:

Income

Payment received, often on a consistent schedule, for employment or from investment profits.

Marginal Ordinary Income Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, increasing progressively as your income surpasses threshold amounts.

Qualified Dividends

Dividend payments received on shares of a corporation, taxed at a lower tax rate than regular income.

Tax Rate

The percentage at which an individual or corporation is taxed.