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Exit Su MC Qu. 88 Mr. Olsen has a marginal tax rate on... Mr. Olsen has a marginal tax rate on ordinary income of 37
Exit Su MC Qu. 88 Mr. Olsen has a marginal tax rate on... Mr. Olsen has a marginal tax rate on ordinary income of 37 percent. He currently earns $100,000 per year through a business operated as a sole proprietorship. If Mr. Olsen does not require current cash from the business, calculate the potential increase or decrease in his annual tax liability if he incorporates and operates the business through a regular corporation. Multiple Choice No increase or decrease $16,000 decrease $16,000 increase $3.000 decrease
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