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Blue Eyed Beauty Supply is the talk of the town. When Elaine started her business, she had no idea it would eyotve to be the

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Blue Eyed Beauty Supply is the talk of the town. When Elaine started her business, she had no idea it would eyotve to be the number one supplier of cosmetology supply in the region. While her business has been successfully operating as a sole proprietorship for many years, her legal counsel has urged her to form a separate legal entity for a variety of nontax reasons. Elaine will form an LLC but has come to you for advice as to which tax classification is best positioned to pay the least overall tax. She has provided you with her 2022 tax data and the following assumptions to develop an Excel model. - Elaine is Single and her sole source of income is from her business activities - It is expected that her business meets the definition of a trade or business for Qualified Business Income deduction purposes - The business generates $140,000 of net income before contemplating any taxes - Elaine is assuming a reasonable compensation amount of $50.000 - As a C Corporation, the business will dividend out all earnings after taxes are paid to Elaine Required: 1. Complete the "The tax is"." column for the filing status table using a formula. 2 Complete the Schedule C tax calculations using VLOOKUP formulas to the 2022 tax brackets. 3. Complete the S Corporation tax calculations using VLOOKUP formulas to the 2022 tax brackets. 4. Complete the C Corporation tax calculations using VLOOKUP formulas to the 2022 tax brackets: Blue Eyed Beauty Supply is the talk of the town. When Elaine started her business, she had no idea it would evolve to be the number one suppli been successfully operating as a sole proprietorship for many years, her legal counsel has urged her to form a separate legal entity for a variety o for advice as to which tax classification is best positioned to pay the least overall tax, She has provided you with her 2022 tax data and the follou - Elaine is Single and her sole source of income is from her business activities - It is expected that her business meets the definition of a trade or business for Qualified Business income deduction purposes - The business generates $140,000 of net income before contemplating any taves - Elaine is assuming a reasonable compensation amount of $50,000 - As a C Corporation, the business will dividend out all earnings after taves are paid to Elaine 2 ted her business, she had no idea it would evolve to be the number one supplier of cosmetology supply in the region. While her business has 3 ars, her legal counsel has urged her to form a separate legal entity for a variety of nontax reasons. Elaine will form an LLC but has come to you 4 the least overall tax. She has provided you with her 2022 tax data and the following assumptions to develop an Excel model: ess activites 7 or business for Qualihed Business income deduction purposes 8 plating any taves 9 yoo 10 ifter taxes are paid to Elaine 14 ing a formule. 15 iulas to the 2022 tax brackets. 16 imulas to the 2022 tax brackets. 17 irmulas to the 2022 tax brackets. 18 (HINT: Use the TRUE logical value for VIOOKUP formulas) Schedule C Schedule C Income Self-Employment Tax Less: 50\% Self-Employment Tax AGI Less: Standard Deduction Less: QBI Taxable income: If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Ordinary Personal income Tax Ordinary Personal Income Tax Overall Total Tax Overall Tax Rate \begin{tabular}{lll|} \hline \multicolumn{1}{c}{ S Corporation } \\ \hline W-2 Income & 50,000.00 \\ \hline Less: Employee Share of Payroll Taxes & \\ \hline Net W-2 Compensation & & \\ \hline AGI & & \\ \hline Less: Standard Deduction & & \\ \hline Less: QBI & & \\ \hline Taxable income: & & \\ \hline \end{tabular} If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Ordinary Personal income Tax \begin{tabular}{l} S Corporation Income Before Payroll Tax \\ Less: S Corporation Payroll Tax \\ \hline Other Income - S Corp K-1 \\ \hline Long Term Capital Gain Tax \end{tabular} Overall Total Tax Overall Tax. Rate c Corporation \begin{tabular}{ll} W-2 Income \\ Less: Employee Share of Payroll Taxes & $50,000.00 \\ \hline Net W-2 Compensation \end{tabular} \begin{tabular}{l} C Corporation Income Before Payroll Tax \\ Less: C Corporation Payroll Tax \\ \hline C Corporation Taxable Income \\ C Corporation Income Tax \end{tabular} AGI Less: Standard Deduction $ 12,950.00 Taxable Income If taxable income is over: But not over: The tax is: If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Ordinary Personal Income Tax Dividend From C Corporation Qualified Dividends Tax Total Personal Tax Overall Total Tax Overall Tax Rate Blue Eyed Beauty Supply is the talk of the town. When Elaine started her business, she had no idea it would eyotve to be the number one supplier of cosmetology supply in the region. While her business has been successfully operating as a sole proprietorship for many years, her legal counsel has urged her to form a separate legal entity for a variety of nontax reasons. Elaine will form an LLC but has come to you for advice as to which tax classification is best positioned to pay the least overall tax. She has provided you with her 2022 tax data and the following assumptions to develop an Excel model. - Elaine is Single and her sole source of income is from her business activities - It is expected that her business meets the definition of a trade or business for Qualified Business Income deduction purposes - The business generates $140,000 of net income before contemplating any taxes - Elaine is assuming a reasonable compensation amount of $50.000 - As a C Corporation, the business will dividend out all earnings after taxes are paid to Elaine Required: 1. Complete the "The tax is"." column for the filing status table using a formula. 2 Complete the Schedule C tax calculations using VLOOKUP formulas to the 2022 tax brackets. 3. Complete the S Corporation tax calculations using VLOOKUP formulas to the 2022 tax brackets. 4. Complete the C Corporation tax calculations using VLOOKUP formulas to the 2022 tax brackets: Blue Eyed Beauty Supply is the talk of the town. When Elaine started her business, she had no idea it would evolve to be the number one suppli been successfully operating as a sole proprietorship for many years, her legal counsel has urged her to form a separate legal entity for a variety o for advice as to which tax classification is best positioned to pay the least overall tax, She has provided you with her 2022 tax data and the follou - Elaine is Single and her sole source of income is from her business activities - It is expected that her business meets the definition of a trade or business for Qualified Business income deduction purposes - The business generates $140,000 of net income before contemplating any taves - Elaine is assuming a reasonable compensation amount of $50,000 - As a C Corporation, the business will dividend out all earnings after taves are paid to Elaine 2 ted her business, she had no idea it would evolve to be the number one supplier of cosmetology supply in the region. While her business has 3 ars, her legal counsel has urged her to form a separate legal entity for a variety of nontax reasons. Elaine will form an LLC but has come to you 4 the least overall tax. She has provided you with her 2022 tax data and the following assumptions to develop an Excel model: ess activites 7 or business for Qualihed Business income deduction purposes 8 plating any taves 9 yoo 10 ifter taxes are paid to Elaine 14 ing a formule. 15 iulas to the 2022 tax brackets. 16 imulas to the 2022 tax brackets. 17 irmulas to the 2022 tax brackets. 18 (HINT: Use the TRUE logical value for VIOOKUP formulas) Schedule C Schedule C Income Self-Employment Tax Less: 50\% Self-Employment Tax AGI Less: Standard Deduction Less: QBI Taxable income: If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Ordinary Personal income Tax Ordinary Personal Income Tax Overall Total Tax Overall Tax Rate \begin{tabular}{lll|} \hline \multicolumn{1}{c}{ S Corporation } \\ \hline W-2 Income & 50,000.00 \\ \hline Less: Employee Share of Payroll Taxes & \\ \hline Net W-2 Compensation & & \\ \hline AGI & & \\ \hline Less: Standard Deduction & & \\ \hline Less: QBI & & \\ \hline Taxable income: & & \\ \hline \end{tabular} If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Ordinary Personal income Tax \begin{tabular}{l} S Corporation Income Before Payroll Tax \\ Less: S Corporation Payroll Tax \\ \hline Other Income - S Corp K-1 \\ \hline Long Term Capital Gain Tax \end{tabular} Overall Total Tax Overall Tax. Rate c Corporation \begin{tabular}{ll} W-2 Income \\ Less: Employee Share of Payroll Taxes & $50,000.00 \\ \hline Net W-2 Compensation \end{tabular} \begin{tabular}{l} C Corporation Income Before Payroll Tax \\ Less: C Corporation Payroll Tax \\ \hline C Corporation Taxable Income \\ C Corporation Income Tax \end{tabular} AGI Less: Standard Deduction $ 12,950.00 Taxable Income If taxable income is over: But not over: The tax is: If taxable income is over: But not over: The tax is: Plus tax percentage: Plus tax amount: Ordinary Personal Income Tax Dividend From C Corporation Qualified Dividends Tax Total Personal Tax Overall Total Tax Overall Tax Rate

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