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Georgia owns all of Peach Corporation's stock. Peach pays her a $70,000 salary, which reduces its before-tax profit to $30,000. Peach distributes all of its
Georgia owns all of Peach Corporation's stock. Peach pays her a $70,000 salary, which reduces its before-tax profit to $30,000. Peach distributes all of its after-tax income to its shareholder, Georgia. Georgia is married, and her spouse receives $90,000 of salary from an unrelated employer. They file jointly, have $31,000 of itemized deductions, and have no dependents. Compute the total income tax that is paid. Ignore payroll taxes. (The tax year is 2022.)
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