Computation of Tax. Georgia, a single taxpayer, operates a business that produces $100,000 of income before any amounts are paid to her. She has no dependents and no other income. She has itemized deductions of $18,000. Compute the total income tax that would be paid assuming the following additional facts. Ignore payroll taxes. a. Georgia operates the business as an S corporation receiving a salary from the corporation of $70,000. The corporation distributes all of its remaining income to the shareholders. b. She operates the business as a C corporation receiving a salary from the corporation of $70,000. The corporation distributes its after tax income to her as a dividend. c. How would the total tax change in each of the first two requirements if the corporation made no payments to the owner other than the salary?

Rupert, Timothy J.. Pearson's Federal Taxation 2020 Individuals (p. 2-41). Pearson Education. Kindle Edition.