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. Create an Excel spreadsheet that will compute the 2018 income tax payable by Lois and Clark and by their business entity. Lois will receive an annual salary from the business of S120,000. 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 S12,000 for a single individual in 2018. Remember that there is no personal exemption in 2018 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 take into account 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 will be $300,000, and the unadjusted basis of the assets of the business, immediately after they were placed in service, is S2,000,000 If the business is organized as a corporation, the income will be taxed at the corporate level. The corporate tax rate for 2018 is a flat 21 percent. To compute the individual tax, use the individual tax calculator available on Blackboard Compute the taxes payable by Lois and Clark assuming their business is a partnership that earns the following amounts of net income. Then compute the tax payable by Lois, Clark, and the corporation assuming the same business income amounts 1. $10,000 S0 S10,000 S500,000 S1,000,000 The computation should be of the 2018 tax only, without regard to the effects of any carrvforwards or carrybacks to other tax vears Based on your findings, what do you recommend to Lois and Clark? 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. Create an Excel spreadsheet that will compute the 2018 income tax payable by Lois and Clark and by their business entity. Lois will receive an annual salary from the business of S120,000. 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 S12,000 for a single individual in 2018. Remember that there is no personal exemption in 2018 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 take into account 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 will be $300,000, and the unadjusted basis of the assets of the business, immediately after they were placed in service, is S2,000,000 If the business is organized as a corporation, the income will be taxed at the corporate level. The corporate tax rate for 2018 is a flat 21 percent. To compute the individual tax, use the individual tax calculator available on Blackboard Compute the taxes payable by Lois and Clark assuming their business is a partnership that earns the following amounts of net income. Then compute the tax payable by Lois, Clark, and the corporation assuming the same business income amounts 1. $10,000 S0 S10,000 S500,000 S1,000,000 The computation should be of the 2018 tax only, without regard to the effects of any carrvforwards or carrybacks to other tax vears Based on your findings, what do you recommend to Lois and Clark