AB Company has $100,000 of income in 2020 before deducting any compensation or other payments to its 50 50 owners, Anthony and Brenda Assume Anthony Brendas ordinary income tax rate is 35 , their dividend rate is 20 and the corporate tax rate is 21 Assume that all tax rates are flat rates The earnings from the business would be eligible for a QBI deduction Assume there are no loss limitations on partnership income Compute the federal income taxes, both corporate and individual, related to each of the following situations AB is operated as a partnership and it distributes $70,000 of the profits in 2020 to its partners AB incorporates and distributes $70,000 in 2020, all treated as a dividend AB is operated as a partnership and it distributes $20,000 of the profits in 2020 to its partners AB incorporates and distributes $20,000 in 2020, all treated as a dividend AB incorporates and pays out all $100,000 in salaries and wages to Anthony and Brenda Based on these calculations, name two factors that affect the choice of entity

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AB Company has $100,000 of income in 2020 before deducting any compensation or other payments to its 50/50 owners, Anthony and Brenda. Assume Anthony/Brendas ordinary

AB Company has $100,000 of income in 2020 before deducting any compensation or other payments to its 50/50 owners, Anthony and Brenda.

Assume Anthony/Brendas ordinary income tax rate is 35%, their dividend rate is 20% and the corporate tax rate is 21%. Assume that all tax rates are flat rates.

The earnings from the business would be eligible for a QBI deduction.

Assume there are no loss limitations on partnership income.

Compute the federal income taxes, both corporate and individual, related to each of the following situations.

AB is operated as a partnership and it distributes $70,000 of the profits in 2020 to its partners.
AB incorporates and distributes $70,000 in 2020, all treated as a dividend
AB is operated as a partnership and it distributes $20,000 of the profits in 2020 to its partners.
AB incorporates and distributes $20,000 in 2020, all treated as a dividend
AB incorporates and pays out all $100,000 in salaries and wages to Anthony and Brenda

Based on these calculations, name two factors that affect the choice of entity.