Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income tax year to be 250000$, of which 200000$ is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. Using the single individual tax brackets and the corporate tax rate in Appendix C find out how much current tax this strategy could save Moana (ignore any Social Security Medicare, or self-employment tax issues). How much income should be left in the corporation

Schedule X-Single If taxable income is But not over: over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9,950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40,525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164,925 $209,425 $33,603 plus 32% of the excess over $164,925 $209,425 $523,600 $47,843 plus 35% of the excess over $209,425 $523,600 $157,804.25 plus 37% of the excess over $523,600