LO3 Kelly, Gwen, and Tuoi incorporated their accounting business and own all its outstanding stock. During the current year, the corporation’s taxable income is $300,000 after deducting salaries of $60,000 for each shareholder-employee. Assume all three owners are single and that each of them has other income that offsets their allowable deductions.

a. What is the corporate income tax liability?

b. What could the shareholders do to lower the corporate income tax liability in the future?