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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. Toto's average annual net

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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. Toto's average annual net profit (before deduction of Mr. Lion's salary) is $220,000. For each of the following cases, compute the income tax burden on this profit. (Ignore any payroll tax consequences.) Required: a. M. Lion's salary is $100,000, and Toto pays no dividends. b. Mt Lion's salary is $100,000, and Toto distributes its after-tax income as a dividend. c. Toto is an Scorporation. Mr. Lion's salary is $100.000, and Toto makes no cash distributions. Assume Toto's ordinary income qualifies for the 20 percent QB1 deduction d. Toto is an Scorporation Mr. Lion draws no salary, and Toto makes no cash distributions. Assume Toto's ordinary income qualifies for the 20 percent QBI deduction e. Toto is an Scorporation. Mr. Llon 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 Amount S 62 200 a Income tax burden on this profit Dincome tax burden on this profit cincome tax burden on this profit d Income tax burden on this profit e income tax burden on this profit S 65,120 65,120 S

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