Question
Ken Tremont and Tucker Bailey began a new consulting business on January 1, 2015 . They organized the business as a C corporation, KT, Inc.
Ken Tremont and Tucker Bailey began a new consulting business on January 1, 2015 . They organized the business as a C corporation, KT, Inc. During 2015 , the corporation was successful and generated revenues of $ 1 comma 350,000 . KT had operating expenses of $ 715, 000 before any payments to Ken or Tucker . During 2015 , KT paid dividends to Ken and Tucker in the amount of $ 100,000 each. Assume that Ken had other ordinary taxable income of $ 300,000, itemized deductions of $ 35,000 , is married (wife has no income), and has no children. Compute the total tax liability of KT and Ken for 2015 . Ignore any phaseout of itemized deductions or reduction of personal exemptions..
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