Question

During 2020, Lincoln Company hires 21 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 $15,850 during the year. Determine the amount of Lincoln's work opportunity credit. $fill in the blank 1.

Answer 1

Answer: $50400

Explanation:

Based on the information given in the question, it should be noted that Lincoln Company can take full credit due to the fact that the workers work for more than 400 hours

Therefore, the work opportunity credit will be claimed as 40% of the first $6,000 and this will be:

= (40% × $6000) × 21

= $2400 × 21

= $50400