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FISH Company is a regular corporation and is owned by four siblings, Fiona, lan, Steve, and Herbert. All four are also working for the company
FISH Company is a regular corporation and is owned by four siblings, Fiona, lan, Steve, and Herbert. All four are also working for the company as its only employees. They are in the 28% tax bracket; assume a 21% tax rate for the company. The corporation had earnings of $2M before making any payments to the four owners. Requirements: A. Assume that the owners receive salary payments of $150,000 each and each also gets a dividend payment of $150,000. (1) Determine the tax liability for FISH Company: (2) Determine the tax liability for all four siblings combined: B. Assume that the owners receive salary payments of $250,000 each and each also gets a dividend payment of $50,000. (3) Determine the tax liability for FISH Company: (4) Determine the tax liability for all four siblings combined
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