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5. You are the CPA who prepares the tax returns for Patrick, his wife, Susan and their two corporations. Patrick owns 100% of Shoe Corporations

5. You are the CPA who prepares the tax returns for Patrick, his wife, Susan and their two corporations. Patrick owns 100% of Shoe Corporations stock and Shoe Corporations current taxable income is $200,000. Susan owns 100% of Socks Corporation stock and Socks current year taxable income is $250,000. Patrick and Susan file a joint federal income tax return. What issues should Patrick and Susan consider with respect to the calculation of their tax return liabilities?

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