Using the information in Problem 20.4

, calculate income taxes for the Willeys

(ignore exemptions and deductions) and their businesses in the following situations:

1. Assume that the Willeys’ average tax rate is 28%, and that both the QSR and the consulting business are unincorporated.

2. Assume that the Willeys’ average tax rate is 28%, the average corporate rate is 20%, and the QSR is incorporated.

3. Assume that the Willeys’ average tax rate is 28%, the average corporate rate is 20%, the QSR is incorporated, and that the QSR pays Wanda $70,000 in dividends that are taxed at the Willeys’ average tax rate.

4. Assume that the Willeys’ average tax rate is 28%, the average corporate rate is 20%, and the QSR is incorporated but is treated as an $ corporation for tax purposes.