$(3$ points$)$ Ajit lives in a fictional country, and operates a consulting business that produces a taxable

income of $$180,000$ per year. The business is currently a proprietorship, so the taxable income is treated

as personal income for Ajit, from a tax perspective. Ajit files taxes singly and can claim $$15,000$ as a

federal personal exemption against his personal income. Assume no provincial taxes apply.

Ajit is considering incorporating his business. If he does, he will pay himself a salary of $$60,000$ a year

from the corporation. The corporation will then pay corporate taxes on the remainder.

Marginal federal personal income tax rates are listed in the tables below.

Federal Personal Income Marginal Tax Rates

The federal corporate tax rate is $22\%.$

a$.$ How much federal income tax does Ajit pay now?

b$.$ How much federal tax would he pay, both personally and through his corporation, if he incorporated

his business?

c$.$ Should he incorporate $($will his taxes go down$)?$

No excel