Professors at a Local University Earn an Average Salary of $80,000

question 1

Multiple Choice

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000. With the beginning of the next academic year, all professors will get a 2% raise. What will be the average and the standard deviation of their new salaries?

• A) $80,000 and $6,120.
• B) $81,600 and $6,000.
• C) $81,600 and $6,120.
• D) $82,000 and $6,200.

---

Definitions:

25% Bracket

A reference to a tax bracket where individuals or entities are taxed at a rate of 25% on their income within a certain range.

Trade or Business

Trade or Business is an activity carried on for the purpose of earning profit by providing goods or services, and is characterized by regularity and continuity.

Section 1231 Asset

A tax term referring to depreciable property or real estate used in a trade or business that, if sold, can result in favorable capital gains treatment.

Ordinary Gain

Gain characterized as ordinary income for tax purposes, typically resulting from the sale of assets not considered capital assets.