1:2-57 Jack is starting a business that he expects to produce $190,000 of income this year before compensating Jack for his services. He has $5,000 of other income and itemized deductions totaling $20,000. He wants to know whether he should incorporate or operate the business as a proprietorship. If a corporation is formed, he wants to know whether he should make an Selection. If he incorporates, the corporation will pay Jack a salary of $100,000. He expects to distribute an additional $7,500 of corporate profits to himself each year. Jack is single. Required: Which organizational form, proprietorship, S corporation, or C corporation, will produce the lowest total current income tax liability for Jack and his business? Ignore payroll and other taxes. 1:2-58 Andrea, who is in the 37% tax bracket, is interested in reducing her taxes. She is considering several alternatives. For each alternative listed below, indicate how much 283 tax, if any, she would save? (For this problem, ignore the additional 3.8% tax.) a. Give $2,000 to a charity. Assume she itemizes. b. Give $2,000 to a charity. Assume she does not itemize, C. Make a gift of bonds valued at $8,000 yielding $600 of interest annually to her 15- year-old daughter who has no other income. d. Sell the bonds from part c for $8,000 and buy tax-exempt bonds yielding $300