Question
Marge is starting Marge's Beauty Salon anticipates the business will earn $100,000 from operating before compensating her for her services and before charitable contributions. Page,
Marge is starting Marge's Beauty Salon anticipates the business will earn $100,000 from operating before compensating her for her services and before charitable contributions. Page, who is single, has $6,000 of her income from other sources and other itemized deductions of $12,000. Her compensation for services will be $50,000. Charitable contributions to be made by the business are expected to be $5,000. Other distributions (dividends) to her from the business are expected to be $14,000.
Required: Calculate her projected 2018 income tax as a proprietorship. Ignore all payroll and other taxes.
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