Micheal projects that KMM will have net income of $100,000 in its first year of operations before considering any payments to her. If things go as planned, her projections show that the business net income will approximately double each year for the next 10 years. Assume her marginal ordinary income tax rate is 37%, her marginal FICA rate on employee compensation is 1.45%, her marginal self- employment tax rate is 2.9%, and any employee compensation or self-employment income she receives is subject to the .9% additional Medicare tax. Also assumeMicheal can claim the qualified business income deduction on KMM's business income, if applicable.

1. Micheal conducted KMM as a C corporation and she received a salary of $25,000. All business net income is paid to her in the form of a dividend.