Which of the Following Taxpayers Are Not Required to Make

question 43

Multiple Choice

Which of the following taxpayers are not required to make estimated payments?

• A)A car mechanic who is self-employed and earns $50,000 a year.
• B)A wealthy individual whose earnings are from corporate dividends.
• C)An employee who works at a local department store with appropriate withholding and no other income.
• D)All of the above must make estimated payments.

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Definitions:

Contributed Capital

The total value of all assets given to a company by its shareholders in exchange for shares of the company's stock.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Common Stock Option Warrants

Rights issued to investors to purchase common stock at a specified price within a predefined time frame, potentially diluting existing shareholders.

Treasury Stock

Shares that were issued and later reacquired by the corporation, reducing the amount of outstanding stock on the open market.