Question

In March 2020, Gray Corporation hired two individuals, both of whom were certified as long-term recipients of family assistance benefits. Each employee was paid $11,000 during 2020. Gray’s work opportunity tax credit amounts for 2020 is:________

a. $ 2,400
b. $ 4,800
c. $ 6,000
d. $ 12,000

Answer 1

Answer: $4800

Step-by-step explanation:

In this scenario, since each employee was paid $11,000 during 2020, Gray’s work opportunity tax credit amounts for 2020 will be calculated as 40% of the first $6000 that each employee made.

This will be:

= 40% × $6000 × 2 employees

= 0.4 × $6000 × 2

= $4800

The answer is $4800