1. Oak Company has $475,000 in taxable income before deducting any allowable compensation or other payment to its sole owner, Ahmad (who is single). Ahmad is in the 32% marginal tax bracket. If Ahmad operates Oak Company as a sole proprietorship and he withdraws $200,000 of the earnings, the federal income tax Oak Company and Ahmad would pay in total tax is:

a. $216,000.

b. $152,000.

c. $88,000.

d. $64,000.

e. none of the above.

2. Oak Company has $475,000 in taxable income before deducting any allowable compensation or other payment to its sole owner, Ahmad (who is single). Ahmad is in the 32% marginal tax bracket. If Ahmad operates the company as a regular C corporation and pays himself a $200,000 salary, the federal income tax Oak Company and Ahmad would pay in total is:

a. $57,750.

b. $99,750.

c. $121,750.

d. $163,750.

e. none of the above.

Information for Problems #3 #6: Glory Corporation realized the following capital gains and losses during the period 2016 through 2021:

2016: Short-term capital gain $ 8,000

Long-term capital loss ($3,000)

2017: Short-term capital gain $11,000

Long-term capital loss ($3,000)

2018: Short-term capital loss ($15,500)

Long-term capital gain $27,500

2019: Short-term capital loss ($12,000)

Long-term capital gain $16,000

2020: Short-term capital gain $22,000

Long-term capital loss ($60,000)

2021: Short-term capital gain $44,000

Long-term capital gain $50,000

Short-term capital loss ($ 4,000)

Long-term capital loss ($ 3,000)

Required:

3. What amount of net capital gain/loss will Glory Corporation recognize/include in its 2020 taxable income?

Net capital gain/loss in 2020 is _______________________________________________________________

4. What amount of net short-term capital gain/loss will Glory Corporation recognize/include in its 2021 taxable

income? Net short-term capital gain/loss in 2021 is _____________________________________________

5. What amount of net long-term capital gain/loss will Glory Corporation recognize/include in its 2021 taxable

income? Net long-term capital gain/loss in 2021 is ______________________________________________

6. What amount of corporate income tax, if any, will Glory Corporation pay on its net capital gain/loss in 2021?

Corporate income tax paid on net capital gain/loss in 2021 is ________________

1. Oak Company has $475,000 in taxable income before deducting any allowable compensation or other payment to its sole owner, Ahmad (who is single). Ahmad is in the 32% marginal tax bracket. If Ahmad operates Oak Company as a sole proprietorship and he withdraws $200,000 of the earnings, the federal income tax Oak Company and Ahmad would pay in total tax is: a. $216,000 b. $152,000 c. $88,000. d. $64,000. e none of the above. 2. Oak Company has $475,000 in taxable income before deducting any allowable compensation or other payment to its sole owner, Ahmad (who is single). Ahmad is in the 32% marginal tax bracket. If Ahmad operates the company as a regular C corporation and pays himself a $200,000 salary, the federal income tax Oak Company and Ahmad would pay in total is: a. $57,750. b. $99,750 C. $121,750 d. $163,750 e none of the above. Information for Problems #3 - #6: Glory Corporation realized the following capital gains and losses during the period 2016 through 2021 2016: Short-term capital gain $8,000 Long-term capital loss ($3,000) 2017: Short-term capital gain $11,000 Long-term capital loss ($3,000) 2018 Short-term capital loss ($15,500) Long-term capital gain $27,500 2019: Short-term capital loss ($12,000) Long-term capital gain $16,000 2020: Short-term capital gain $22,000 Long-term capital loss ($60,000) 2021 Short-term capital gain $44,000 Long-term capital gain $50,000 Short-term capital loss ($ 4,000) Long-term capital loss ($ 3,000) Required: 3. What amount of net capital gain/loss will Glory Corporation recognize/include in its 2020 taxable income? Net capital gain/loss in 2020 is 4. What amount of net short-term capital gain/loss will Glory Corporation recognize/include in its 2021 taxable income? Net short-term capital gain/loss in 2021 is 5. What amount of net long-term capital gain/loss will Glory Corporation recognize/include in its 2021 taxable income? Net long-term capital gain/loss in 2021 is 6. What amount of corporate income tax, if any, will Glory Corporation pay on its net capital gainloss in 2021? Corporate income tax paid on net capital gain/loss in 2021 is