As a New Entrepreneur,Anthony's Magic Number for 2013 Is $42,000

question 54

Multiple Choice

As a new entrepreneur,Anthony's magic number for 2013 is $42,000.If the current tax rate for his business is 30 percent,calculate the amount that Anthony's firm would need to sell for him to get his magic number.

• A) $50,000
• B) $50,495
• C) $60,000
• D) $60,854

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Definitions:

Compensation

Payment or remuneration received by an individual for services performed, which can include wages, salaries, bonuses, and commissions.

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for education expenses from elementary through post-secondary education.

Qualified Education Expenses

Expenses for education that qualify for tax benefits like deductions and credits, usually including tuition and fees.

Annuity Contract

A financial product sold by insurance companies that pays out income, and can be used as part of a retirement strategy to provide a steady income stream in later years.