6. Based on Problem 12-5 Chun operates a consulting business that produces a taxable income of $190,000 per year. The business is set up as a proprietorship, so the taxable income is treated like salary income for her, from a tax perspective. (It's the same as if she had a job that paid that amount of salary). Chun can claim $11,474 as a federal personal exemption against her personal income. (This comes from Table 12-2). The applicable individual federal income tax table is in Table 12-1. Chun is considering incorporating her business. If she does, she will pay herself a salary of $100,000 a year from the corporation, upon which federal income tax must be paid. The corporation will then pay taxes on the remaining $90,000. A federal corporate tax rate of 15% will apply (this value is from Table 12-3). The corporation will retain the balance (as retained earnings). Assume that no Small Business Deduction applies. You can ignore provincial income and corporate taxes (which would also normally apply). a. How much tax will she pay if she continues to operate the business as a proprietorship? b. How much tax would she pay if she incorporated her business, both personally and through her corporation? c. Should she incorporate (will her taxes go down)? How much will her taxes change by? 6. Based on Problem 12-5 Chun operates a consulting business that produces a taxable income of $190,000 per year. The business is set up as a proprietorship, so the taxable income is treated like salary income for her, from a tax perspective. (It's the same as if she had a job that paid that amount of salary). Chun can claim $11,474 as a federal personal exemption against her personal income. (This comes from Table 12-2). The applicable individual federal income tax table is in Table 12-1. Chun is considering incorporating her business. If she does, she will pay herself a salary of $100,000 a year from the corporation, upon which federal income tax must be paid. The corporation will then pay taxes on the remaining $90,000. A federal corporate tax rate of 15% will apply (this value is from Table 12-3). The corporation will retain the balance (as retained earnings). Assume that no Small Business Deduction applies. You can ignore provincial income and corporate taxes (which would also normally apply). a. How much tax will she pay if she continues to operate the business as a proprietorship? b. How much tax would she pay if she incorporated her business, both personally and through her corporation? c. Should she incorporate (will her taxes go down)? How much will her taxes change by