E2 Expert Q&A Done . Marker Solutions is a security consulting company (considered a specialized service trade or business for Sec. 199a purposes) that reports the following in 2019: Gross Consulting Fees $424,850 Collected Expenses: Office Rent: $84,000 Supplies: $19,121 Salaries to non-owner Employees $180,000 (3 @ $60,000 each) Other ordinary business 26,413 expenses: Reasonable compensation to $30,000 owner (Judy Marker) Additional cash withdrawals by Judy Marker $12,000 The employer portion of FICA taxes on wages paid was 7.65%. In addition, Federal and State Unemployment taxes were assessed and paid by Marker Solutions at a rate of 6% on the first $7,000 of earnings per employee. Judy Marker is 100% owner of Marker Solutions. She is married to Jay Marker, who earns a $40,000 salary (with $4,000 withheld for federal income tax purposes), as a W2 employee of a local grocery store. Judy and Jay take the standard deduction when filing their personal taxes. Judy made estimated federal tax payments totaling $16,000 during 2019. with their MFJ 2019 income tax return $13718.78 Wyllient due for overpayment to be refunded) 3. Refer to the facts presented in Problem 2 Now assume that Marker Solutions is operated as a C Corporation The reasonable compensation to Judy Marker was paid in the form of W2 wages (of which $3,000 was withheld for federal income taxes) and therefore would be subject to the FICA and unemployment taxes at the corporate level The estimated tax payments made were paid by and for the business Compute the following under these assumptions a Corporate taxable income b. Corporate tax liability c. Judy and Jay Marker's federal tax payment due (or overpayment to be refunded) with their MFJ 2019 income tax return 4. Refer to the facts presented in Problem 2 Now assume that Marker Solutions is operated as an S Corporation. The reasonable compensation to Judy Marker was paid in the form of W2 wages (of which $3,000 was withheld for federal income taxes) and therefore would be subject to the FICA and unemployment taxes at the corporate level. The estimated tax payments made were paid by and for the Markers Compute the following under these assumptions a S Corporation ordinary income b. S Corporation tax liability Judy and Jay Marker's federal tax payment due for overpayment to be refunded) with their MFJ 2019 income tax return d. Calculate the total tax assessed (including employment taxes, SE tax, corporate income tax and individual tax) under Problem 2. Problem 3, and Problem 4 assumptions What form of entity would you recommend to Judy Marker? E2 Expert Q&A Done . Marker Solutions is a security consulting company (considered a specialized service trade or business for Sec. 199a purposes) that reports the following in 2019: Gross Consulting Fees $424,850 Collected Expenses: Office Rent: $84,000 Supplies: $19,121 Salaries to non-owner Employees $180,000 (3 @ $60,000 each) Other ordinary business 26,413 expenses: Reasonable compensation to $30,000 owner (Judy Marker) Additional cash withdrawals by Judy Marker $12,000 The employer portion of FICA taxes on wages paid was 7.65%. In addition, Federal and State Unemployment taxes were assessed and paid by Marker Solutions at a rate of 6% on the first $7,000 of earnings per employee. Judy Marker is 100% owner of Marker Solutions. She is married to Jay Marker, who earns a $40,000 salary (with $4,000 withheld for federal income tax purposes), as a W2 employee of a local grocery store. Judy and Jay take the standard deduction when filing their personal taxes. Judy made estimated federal tax payments totaling $16,000 during 2019. with their MFJ 2019 income tax return $13718.78 Wyllient due for overpayment to be refunded) 3. Refer to the facts presented in Problem 2 Now assume that Marker Solutions is operated as a C Corporation The reasonable compensation to Judy Marker was paid in the form of W2 wages (of which $3,000 was withheld for federal income taxes) and therefore would be subject to the FICA and unemployment taxes at the corporate level The estimated tax payments made were paid by and for the business Compute the following under these assumptions a Corporate taxable income b. Corporate tax liability c. Judy and Jay Marker's federal tax payment due (or overpayment to be refunded) with their MFJ 2019 income tax return 4. Refer to the facts presented in Problem 2 Now assume that Marker Solutions is operated as an S Corporation. The reasonable compensation to Judy Marker was paid in the form of W2 wages (of which $3,000 was withheld for federal income taxes) and therefore would be subject to the FICA and unemployment taxes at the corporate level. The estimated tax payments made were paid by and for the Markers Compute the following under these assumptions a S Corporation ordinary income b. S Corporation tax liability Judy and Jay Marker's federal tax payment due for overpayment to be refunded) with their MFJ 2019 income tax return d. Calculate the total tax assessed (including employment taxes, SE tax, corporate income tax and individual tax) under Problem 2. Problem 3, and Problem 4 assumptions What form of entity would you recommend to Judy Marker