Baby Boomers are among the fastest-growing demographic groups on Facebook. Marketers need to study such trends because
A. very large numbers of people make up this demographic.
B. Baby Boomers have played a major role in the social media revolution.
C. Baby Boomers typically have little money to spend.
D. online ads are most effective when seen by people of all ages.
E. people in this demographic are known for being techno-savvy.
Answer: A
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Kansas Corporation is a 68% shareholder in Colorado, Inc. Last year, Colorado paid Kansas $100,000 as compensation for unspecified services provided by Kansas employees to Colorado, and deducted the payment on its federal income tax return. The revenue agent who audited both corporations' returns concluded that the payment is a constructive dividend. Both corporations have a 21% marginal tax rate. What is the effect of this audit conclusion on each corporation's income tax liability?
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