In March 2019, 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 2019.Gray's work opportunity tax credit amounts for 2019 is:

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The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from certain targeted groups, including long-term family assistance recipients. The credit amount is a percentage of the first-year wages paid to the qualifying employee, up to a maximum amount.

For long-term family assistance recipients, the credit amount is 40% of the first-year wages paid, up to a maximum of $9,600 per employee. In this case, each employee was paid $11,000 in 2019, so the maximum credit amount for each employee would be $4,400 (40% of $11,000).

Since Gray Corporation hired two employees who are long-term family assistance recipients, the total credit amount would be $8,800 ($4,400 x 2). Therefore, the best choice is B, $4,800, which is the closest approximate amount to the total credit amount.

In March 2019, Gray Corporation Hired Two Individuals, Both of Whom