Bob Woods, owner of Woods Place, wants to know the potential tax liability of his restaurant given

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Bob Woods, owner of Woods Place, wants to know the potential tax liability of his restaurant given various levels of taxable income and different forms of organization. Assume that Woods Place potentially generates pre-tax income at 3 levels:
Low level $ 50,000 Medium level $ 80,000 High level $150,000 Required:
1. Using the 2005 tax rates, calculate the income tax liability if Woods Place is incorporated and files its tax returns as a C corporation.
2. Using the 2005 tax rates for a married individual filing jointly, calculate the income tax liability for Bob Woods, assuming Woods Place is unincorporated. Assume Bob has deductions of $15,000 and four exemptions at $3,200 each.

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