Jack Flubber, who owns Sons of Flubber Construction Co., and runs it as a proprietorship, had gross profits last year of $120,000. He has $7,000 in exemptions and deductions. He paid $30,000 in taxes. If he paid himself a salary of $65,000 and a dividend of $15,000 taxed at 20%, how much he would save if he decided to incorporate as a closely held corporation with a 25% tax rate (choose the closest answer)

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.