Mr Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc , which manufactures greeting cards Totos average annual net profit (before deduction of Mr Lions salary) is $280,000 For each of the following cases, compute the income tax burden on this profit Assume that all dividends are taxed to individuals at a 20 tax rate (Ignore any payroll tax consequences ) Required Mr Lions salary is $100,000, and Toto pays no dividends Mr Lions salary is $100,000, and Toto distributes its after tax income as a dividend Toto is an S corporation Mr Lions salary is $100,000, and Toto makes no cash distributions Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations Toto is an S corporation Mr Lion draws no salary, and Toto makes no cash distributions Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations Toto is an S corporation Mr Lion draws no salary, and Toto makes cash distributions of all its income to Mr Lion Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations

Question

Mr  Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc , which manufactures greeting cards  Totos average annual net profit (before deduction of Mr  Lions salary) is $280,000  For each of the following cases, compute the income tax burden on this profit   Assume that all dividends are taxed to individuals at a 20  tax rate  (Ignore any payroll tax consequences ) Required  Mr  Lions salary is $100,000, and Toto pays no dividends  Mr  Lions salary is $100,000, and Toto distributes its after tax income as a dividend  Toto is an S corporation  Mr  Lions salary is $100,000, and Toto makes no cash distributions  Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations  Toto is an S corporation  Mr  Lion draws no salary, and Toto makes no cash distributions  Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations  Toto is an S corporation  Mr  Lion draws no salary, and Toto makes cash distributions of all its income to Mr  Lion  Assume Toto's ordinary income qualifies for the 20 percent QBI deduction, subject to no limitations

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Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc., which manufactures greeting cards. Totos average annual net

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