Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Suppose pre-tax earnings are $100,000.00 and the corporate tax
rate is 42%. How much additional money can a business owner
receive by declaring the earnings as personal income which is
taxed at a rate of 31%?
a. $11,000.00
b. $42,000.00
c. $31,000.00
d. $3,200.00
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Transcribed Image Text:Suppose pre-tax earnings are $100,000.00 and the corporate tax rate is 42%. How much additional money can a business owner receive by declaring the earnings as personal income which is taxed at a rate of 31%? a. $11,000.00 b. $42,000.00 c. $31,000.00 d. $3,200.00
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