Federal Income Tax II Business Income Tax ACCT Accounting

Decision Making Planning LO.I, 2, 3 Mr. and Mrs. Chang are going to establish a manufacturing business. They anticipate that the business will be profitable immediately due to a patent Mrs. Chang holds. They predict that profits for the first year will be about $300,000 and will increase at a rate of about 20% per year for the foreseeable future. Advise the Changs on the form of business entity they should select. Assume that the couple will be in the 37% Federal income tax bracket for this income.