5. Government Q imposes a net income tax on businesses operating within its jurisdiction. The tax equals 3% of income up to $500,000 and 5% of income in excess of $500,000. Company K generated $782,000 net income this year. Compute the income tax that Company K owes to Q.

Select one:

a.

$39,100

b.

$29,100

c.

$44,200

d.

$14,100

6. A taxpayer who invests in a growth stock rather than a stock that pays an annual dividend is engaging in tax planning based on the:

Select one:

a.

Time period variable

b.

Character variable

c.

Jurisdiction variable

d.

Entity variable