Mr. and Mrs. Berry are equal partners in a family partnership. Mr. and Mrs, Berry's marginal tax rate is 35%. Next year, the partnership is expected to generate $3,200,000 of ordinary income. The Berry's are considering transferring 20% interests in the partnership to each of their two children. Their daughter. Straw, has a 12% marginal tax rate. Their son, Rasp, has a 22% marginal tax rate. Calculate the expected annual tax savings to the family from the proposed transfer of partnership interests. $256,000 $230.400 $448,000 $224,000 Coconut, an individual, is the sole shareholder of Tropical Fruit Corporation, a U.S. based corporation. Coconut also owns the office building that serves as corporate headquarters for Tropical Fruit Corporation. Last year, Tropical Fruit Corporation paid $800,000 annual rent to Coconut for use of the building. Tropical Fruit Corporation 's marginal tax rate was 21% and Coconut's marginal tax rate on ordinary income was 37%. Also. Coconut's qualified dividend rate was 20%. The revenue agent who audited Tropical Fruit Corporation's return concluded that the fair rental value of the office building was $600.000. Compute the decrease in Coconut's income tax liability as a result of this audit conclusion. $8,000 $34,000 $42,000 $6,000 Coconut, an individual, is the sole shareholder of Tropical Fruit Corporation, a U.S. based corporation. Coconut also owns the office building that serves as corporate headquarters for Tropical Fruit Corporation. Last year, Tropical Fruit Corporation paid $400,000 annual rent to Coconut for use of the building. Tropical Fruit Corporation 's marginal tax rate was 21% and Coconut's marginal tax rate on ordinary income was 37%. Also, Coconut's qualifed dividend rate was 20%. The revenue agent who audited Tropical Fruit Corporation's return concluded that the fair rental value of the office building was $300,000. What is the net increased amount of Coconut and Tropical Fruit Corporation's combined income tax liability as a result of this audit conclusion? $3,000 $4,000 $21,000 $17,000 Mango, an individual, has a marginal tax rate on ordinary income of 37 percent. He currently earns $1,250,000 per year of ordinary income through a business operated as a sole proprietorship. If Mango does not require current cash from the business, calculate the potential decrease in his annual tax liability if he incorporates and operates the business through a C corporation. Assume the corporate tax rate is 21%. $37,500 $262,500 $200,000 $125,000