Green Corporation hires six individuals o n January 4, 2018, all of whom qualify for the work opportunity credit. Three of these individuals receive wages of $8,500 during 2018, and each individual works more than 400 hours during the year. The other three individuals each work 300 hours and receive wages of $5,000 during the year.
a. Calculate the amount of Green's work opportunity credit for 2018.
b. If Green pays total wages of $140,000 to its employees during the year, how much of this amount is deductible in 2018 assuming that the work opportunity credit is taken?