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I need dividends income tax for sasha to complete this question in part b. Problem 3-31 (LO. 1) In the current year, Azure Company has
I need dividends income tax for sasha to complete this question in part b.
Problem 3-31 (LO. 1) In the current year, Azure Company has $350.000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Arure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. Conore the deduction for qualified business Income and the 3.8% Medicare surtaxonne investment income.) The rates on qualified dividends are 0%, 15% and 20% If an amount is zero, enter "0". a. Azure is a C corporation and pays no dividends or salary to Sasha Azure Company, as a has taxable income of corporation, has taxable income of $ O from Azure. 350,000 and corporate income tax of 73,500 . Sasha Feedback Check My Work A sole proprietorship is not a taxable entity separate from the individual who owns the proprietorship. Unlike proprietorships, partnershi and 5 corporations, corporations are subject to an entity-level Federal income tax. b. Azure is a corporation and distributes $75,000 of dividends to Sasha. and corporate income tax of 73,500 . Sasha Incurs Income tax of Azure Company has taxable income of $ 350,000 5,341 X with respect to the dividends. c. Azure is a corporation and pays $75,000 of salary to Sasha. (Ignore payroll taxes.) The salary paid to Sasha is tax of $ 57,750 deductible by Azure Company resulting in taxable income of $ 275,000 and corporate income Sasha incurs income tax of $ 27.750 with respect to the salary she received during the year d. Azure is a sole proprietorship, and Sasha withdraws $0.gnore self-employment taxes.) There is no Federal income tax applicable to businesses formed as sole proprietorships. Sasha Incurs income tax of 129,500 with respect to Azure Company. Check My Work Correct pay tax on the income of . Auris sole proprietorship, and Sasha withdraws $75.000. Conore self employment taxes.) There is no Federal income tax applicable to businesses formed as sole proprietorships, Sasha will Azure Company, regardless of the amount she withdrawsStep by Step Solution
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