Mr. Lion, who is in the 39.6 percent tax bracket, is the sole shareholder of Toto, which manufactures greeting cards. Toto's average annual net profit (before deduction of Mr. Lion's salary) is $270,000. For each of the following cases, compute the income tax burden on this profit. (Ignore any payroll tax consequences.) Use Corporate tax rate schedule. 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 c. Toto is an S corporation. Mr. Lion's salary is $100,000, and Toto makes d. Toto is an S corporation. Mr. Lion draws no salary, and Toto makes no e. Toto is an S corporation. Mr. Lion draws no salary. and Toto makes cash a dividend no cash distributions cash distributions. distributions of all its income to Mr. Lion. a Income tax burden on this proft 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 ?Prev 17 of 21111 Next > ere to search