Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

here is the question. i attempted to input the answers in below but it is not correct 8 (similar to) Question Help a single taxpayer,

here is the question. i attempted to input the answers in below but it is not correct

image text in transcribed
8 (similar to) Question Help a single taxpayer, operates a mini mart. She is considering either continuing the business as a sole proprietorship or reorganizing it as either a C corporation or an S corporation. Her goal is to withdraw $24,000 of profits from the business annually while ng her total tax liability. She expects the business to generate annually $48,000 of taxable income, all of which qualifies as pass-through income before considering a deductible salary expense. ck the icon to view more information.) ement business form(s) can best achieve Allana's goals? lete the table to determine the amount of total tax for each business form. Start with the entity level, then determine Allana's tax and finally the total tax. (Use parentheses or a minus sign for numbers to be subtracted. Complete all input fields. For entries $0 balance, make sure to enter "0" in the appropriate column. For simplification purposes, please use a 22% tax rate to calculate the tax on Allana's ordinary income; do not use the tax rate schedules.) Sole C Corporation C Corporation S Corporation S Corporation Proprietorship with Salary with Dividend with Salary with Distribution More Info X ty Level: me before salary 48000 48000 48000 48000 48000 ary deduction -24000 -24000 Remember that a shareholder is taxed on S corporation income whether withdrawn 24000 24000 or not and is not taxed on the actual withdrawals or distributions. Assume the C cable income 48000 24000 48000 corporation is in the 21% corporate tax bracket, Allana is in the 22% individual tax bracket for ordinary income, and Allana is taxed at 15% on dividend income. When tity level tax -5040 -10080 -5040 -5040 considering either corporate option, perform the analysis first by treating any withdrawals as deductible salary payments of the corporation. Then do the analysis by treating them as nondeductible dividends or distributions. Ignore employment taxes. Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J Bieg, Judith A Toland

29th Edition

1337673196, 9781337673198

More Books

Students also viewed these Accounting questions

Question

List eight benefits of having a clear mission statement.

Answered: 1 week ago

Question

Write a java program that displays the grades

Answered: 1 week ago

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago