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 supplier of cosmetology products 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 has come to you for advice on the tax implications of her decision. You have loaded her 2022 tax data, based upon provided assumptions, into a model based on the following facts: 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. Given her responsibilities, Elaine is assuming a reasonable compensation amount of $50,000. As a C Corporation, the business will pay out all earnings after taxes are paid to Elaine. Elaine wants to minimize her overall tax burden while protecting her assets. Blue-Eyed Beauty Supply is in an industry enjoying a period of growth and investment, and Elaine wants to grow her business to take advantage of the expanding market. Using 2022 income tax rules, you have created the following Tableau visualization for the current tax year to help Elaine make a decision. Mouse over the graphs to reveal specific amounts for use in answering the following questions. Blue Eyed Beauty Supply C Corp $7.650 $18.097 $14,452 540 Sole Prop $19,781 5 Corp $7,650 $19.273 $15,708 $26,923 $35,489 50 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Tax Entity-level Taxes W-2 Taxes Other Taxes Sole Prop S Corp C Corp Sch C Income 140,000 0 0 W-2 Income 0 50,000 50,000 Other Income Dividend Income 0 86,175 0 0 68,078 Less: 50% Self-Emply Tax 9,891 0 0 AGI 130,109 136,175 118,078 Std Deduct 12,950 12,950 12,950 Less: QBI 26,022 17,235 0 Personal Taxable Income Other Taxes Entity-level Taxes 91.137 105,990 105,128 15,708 19,273 14,452 19,781 0 0 0 0 18,097 W-2 Taxes Total Tax 0 7,650 7.650 35,489 26,923 40,199 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How much total tax does Elaine pay currently as a sole proprietorship? Note: Rounded to the nearest whole dollar Elaine's Total tax _ Required A Required B Required C Required D How much less Employment tax will Elaine pay if she incorporates and makes a time S proprietorship? Note: Rounded to the nearest whole dollar Reduction in Elaine's Employment tax $ 0 < Required A Required C > Required A Required B Required C Required D What is the Corporate-level tax due if she does not make an S Corporation election? Note: Rounded to the nearest whole dollar Corporate-level tax due < Required C Required D > How might Elaine minimize the tax implication of C Corporation status?