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 $360,000 For each of the following cases, compute the income tax burden on this profit (Ignore any payroll tax consequences ) a Mr Lion's salary is $100,000, and Toto pays no dividends b Mr Lion's salary is $100,000, and Toto distributes its after tax income as a dividend c Toto is an S corporation Mr Lion's salary is $100,000, and Toto makes no cash distributions Assume Toto's ordinary income qualifies for the 20 percent Section 199A deduction d 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 Section 199A deduction e 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 Section 199A deduction a Income tax burden on this profit b Income tax burden on this profit c Income tax burden on this profit d Income tax burden on this profit e Income tax burden on this profit

Question

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 $360,000  For each of the following cases, compute the income tax burden on this profit  (Ignore any payroll tax consequences ) a  Mr  Lion's salary is $100,000, and Toto pays no dividends  b  Mr  Lion's salary is $100,000, and Toto distributes its after tax income as a dividend c  Toto is an S corporation  Mr  Lion's salary is $100,000, and Toto makes no cash distributions  Assume Toto's ordinary income qualifies for the 20 percent Section 199A deduction  d  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 Section 199A deduction e  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 Section 199A deduction  a  Income tax burden on this profit b  Income tax burden on this profit c  Income tax burden on this profit d  Income tax burden on this profit e  Income tax burden on this profit

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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

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