Question

During 2020, Lincoln Company hires 22 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $13,600 during the year. Determine the amount of Lincoln's work opportunity credit. $fill in the blank 1 .

Answer 1

$52,800

Step-by-step explanation:

The computation of the amount of Lincoln's work opportunity credit is shown below:

Since the employees work in excess of 600 hours so it should be more than 400

So, the work opportunities credit for each would be $6,000 × 40% i.e. $2,400

Now the amount of Lincoln's work opportunity credit is

= $2,400 × 22

= $52,800