Megan operates a housecleaning business as a sole proprietorship. She oversees a team of 10 cleaning personnel, markets the business, and provides supplies and equipment. The business has been generating net taxable profits of $68,000 per year, before considering the Sectlon 199A deduction. As a sole proprletor, Megan qualifies for the 20 percent deduction, reducing taxable Income from the business to $54,400. a. Assume that Megan's marginal tax rate on ordinary Income is 35 percent and that she has no pressing need for cash flow from this business. Should Megan consider Incorporating and operating the business through a C corporation? Provide calculations to support your conclusion. (Ignore any payroll or self-employment tax considerations.) Income tax liability if operated as a C corporation 13,800 10,000 per year Income tax savings b. How would your concluslon In part a change If Megan's marginal tax rate were only 28 percent? Annual tax savings Megan operates a housecleaning business as a sole proprietorship. She oversees a team of 10 cleaning personnel, markets the business, and provides supplies and equipment. The business has been generating net taxable profits of $68,000 per year, before considering the Sectlon 199A deduction. As a sole proprletor, Megan qualifies for the 20 percent deduction, reducing taxable Income from the business to $54,400. a. Assume that Megan's marginal tax rate on ordinary Income is 35 percent and that she has no pressing need for cash flow from this business. Should Megan consider Incorporating and operating the business through a C corporation? Provide calculations to support your conclusion. (Ignore any payroll or self-employment tax considerations.) Income tax liability if operated as a C corporation 13,800 10,000 per year Income tax savings b. How would your concluslon In part a change If Megan's marginal tax rate were only 28 percent? Annual tax savings