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Andrew and Jake decide to start a new business. Andrew will own 70% and Jake will own 30%. They are both single taxpayers. Andrew
Andrew and Jake decide to start a new business. Andrew will own 70% and Jake will own 30%. They are both single taxpayers. Andrew is in the 24% marginal tax bracket and Jake is in the 32% tax bracket. In Year 1, the business makes a profit of $100,000. Andrew withdraws $35,000 and Jake withdraws $15,000. Required: 1. If they select to be a C-Corporation, how much will the corporation pay in federal income taxes? How much will they each pay in federal income taxes? 2. If they select to be a S-Corporation, how much will the corporation pay in federal income taxes? How much will they each pay in federal income taxes?
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Lets break it down 1 CCorporation The corporation will pay taxes on the profit of 100000 The corpora...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
