Mariah, a single taxpayer, operates aa computer repair shopcomputer repair shop. She is considering either continuing the business as a sole proprietorship or reorganizing it as either a C corporation or an S corporation. Her goal is to withdraw $25,000 of profits from the business annually while minimizing her total tax liability. She expects the business to generate annually $48,000 of taxable income, all of which qualifies as pass-through income before considering a deductible salary expense.

Complete the table to determine the amount of total tax for each business form. Start with the entity level, then determine Mariah's tax and finally the total tax. (Use parentheses or a minus sign for numbers to be subtracted. Complete all input fields. For entries with a $0 balance, make sure to enter "0" in the appropriate column. For simplification purposes, please use a 22% tax rate to calculate the tax on Mariah's ordinary income; do not use the tax rate schedules.) Remember that a shareholder is taxed on S corporation income whether withdrawn or not and is not taxed on the actual withdrawals or distributions. Assume the C corporation is in the 21% corporate tax bracket, Mariah is in the 22% individual tax bracket for ordinary income, and Mariah is taxed at 15%on dividend income. When considering either corporate option, perform the analysis first by treating any withdrawals as deductible salary payments of the corporation. Then do the analysis by treating them as nondeductible dividends or distributions. Ignore employment taxes. Entity Levels: Income before salary, salary deduction, taxable income, entity level tax. Categories: Sole Proprietorship, C Corporation with Salry, C Corporation with Dividend, S Corporation with Salary, S Corporation with Distribution