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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

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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 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.) View the standard deduction amounts. Viow the 2022 tax rale schedule for the Married fling iointly filing status. Read the requirement a. Compute the total income tax that would be paid assuming Peach is an S corporation. Ignore payroll taxes Begin by calculating taxable income for Georgia under this scenario Now enter the income tax that would be paid by Georgia and the corporation under this scenario, and compute the total income tax. (Use the 2022 tax rate schedules for all tax calculations Enter a "0- if no tax is due. Do not round any intermediary calculations Round your final tax liability to the nearest whole dollar) Next combute the total income tax that would be vaid assumina the additional facts under scenario (b) lanore pavroll taxes Georgia owns all of Peach Corporation's stock. Peach pays her a $70,000 salary, which reduces its before-tax profit to Now enter the income tax that would be paid by Georgia and the corporation under this scenario, and compute the total income tax. (Use the 2022 tax rate schedules for all tax calculations. Enter a " 0if no tax is due. Do not round any intermediary calculations. Round your final tax liability to the nearest whole dollar.) Next compute the total income tax that would be paid assuming the additional facts under scenario (b) Ignore payroll taxes b. Compute the total income tax that would be paid assuming Peach is an C corporation Ignore payroll taxes Begin by calculating taxable income for Georgia under this scenario. (Enter a " 0 " for any zero amounts) Now enter the income tax that would be paid by Georgia and the corporation under this scenario. (Use the 2022 tax rate Georgia owns all of Peach Corporation's stock. Peach pays her a $70,000 salary, which reduces its before-tax profit to Now enter the income tax that would be paid by Georgia and the corporation under this scenario. (Use the 2022 tax rate schedules for all tax calculations. Do not round any intermediary calculations. Round your final tax liability to the nearest whole dollar) c. How would the total income tax change in parts a and b if Peach does not distribute any of its after-tax profit to Georgia? Let's begin by calculating any change in tax under the set of facts for scenario (a), assuming that the corporation made no payments to the owner other than the salary. (Enter a " 0 " for no change in tax.) Now calculate any change in tax under the set of facts for scenario (b), assuming that the corporation made no payments to the owner other than the salary. (Enter a "0" for no change in lax Use a minus sign or parentheses for a decrease in tax) Increase (decrease) in Income tax paid by Net effect on tax income tax c. How would the total income tax change in parts a and b if Peach does not distribute any of its after-tax profit to Georgia? Let's begin by calculating any change in tax under the set of facts for scenario (a), assuming that the corporation made no payments to the owner other than the salary (Enter a " 0 " for no change in tax) Now calculate any change in tax under the set of facts for scenario (b), assuming that the corporation made no payments to the owner other than the salary. (Enter a " 0for no change in tax Use a minus sign or parentheses for a decrease in tax.) Standard Deduction Amounts Married Filing Joint Tax Rate Schedule Qualified Dividends are taxed at a 15% rate for married taxpayers whose taxable income is higher than $83,350 but not over $517,200

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