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Logan, a 50 percent shareholder in Military Gear Inc. (MG). is comparing the tax consequences of losses from C corporations with losses from S corporations.
Logan, a 50 percent shareholder in Military Gear Inc. (MG). is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $103.000 tax loss for the year. Logan's tax basis in his MG stock was $151.500 at the beginning of the year, and he received $76,500 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24%, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation? Multiple Choice SO 6,000 O 12.360 18.360
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