Lois and Clark are both single and neither one has any dependents. They are 50 percent co- owners of a new business, and they are trying to decide whether to organize the business as a partnership or a C corporation. They know that one of the factors to consider is the tax impact of the organizational form. Compute the 2023 income tax payable by Lois and Clark and by their business entity. Lois will receive an annual salary from the business of $120,000. Clark will receive an annual salary of $80,000. Their only other source of income is their share of business profit. Both use the standard deduction, which is $13,850 for a single individual in 2023. The business net income after salaries will pass through to Lois and Clark in equal amounts if their business is organized as a partnership. Remember to consider the Qualified Business Income Deduction (section 199A) related to partnership income. The business is not involved in a service trade or business such as accounting, health, or law. None of the income qualifies as self-employment income. The W-2 wages of the business, paid to employees other than Lois and Clark, will be $300,000. The unadjusted basis