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In 2022, Pear Company has operating income of $420,000 before deducting any compensation to its owner/CEO, Steven. Pear Company also has $130,000 of operating
In 2022, Pear Company has operating income of $420,000 before deducting any compensation to its owner/CEO, Steven. Pear Company also has $130,000 of operating expenses. a. If Pear Company is a C corporation, and Steven withdraws $96,000 as salary, what are the tax consequences in this situation? Please specify the taxpayer(s), the taxable income, and O amount of tax. Assume no other events with tax consequences occurred in 2022. (7 points) Answer: b. Pear Company is an S corporation, and Steven owns 30% of the company. If Steven also withdraws $96,000, what are the tax consequences in this situation? Please specify the taxpayer(s), taxable income, and amount of tax. Assume no other events with tax
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South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
Authors: James Smith, William Raabe, David Maloney, James Young
18th Edition
9781285438290, 1285439740, 1285438299, 978-1285439747
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