In March 2010,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 2010.Only one of the individuals continued to work for Gray Corporation in 2011,earning $9,000 during the year.No additional workers were hired in 2011.Gray Corporation's work opportunity tax credit amounts for 2010 and 2011 are:

Question

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Gray Corporation hired two individuals who were certified as long-term recipients of family assistance benefits, making them eligible for the Work Opportunity Tax Credit (WOTC). The credit amount for each employee is 40% of their first-year wages, up to $6,000, and 50% for second-year wages, up to $10,000. Therefore, the WOTC amounts for 2010 and 2011 are calculated as follows:

For 2010:
- Employee 1: $11,000 x 40% = $4,400
- Employee 2: $11,000 x 40% = $4,400
Total WOTC amount for 2010: $4,400 + $4,400 = $8,800

For 2011:
- Employee 1: not eligible since they did not work for Gray Corporation in 2011
- Employee 2: $9,000 x 50% = $4,500
Total WOTC amount for 2011: $4,500

Therefore, the total WOTC amounts for 2010 and 2011 are $8,800 + $4,500 = $13,300, which corresponds to choice (B).

In March 2010,Gray Corporation Hired Two Individuals,both of Whom Were