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Mrs. Fuente, who has a 37% marginal tax rate on ordinary income, is the sole shareholder and CEO of Furey Inc. She also holds a
Mrs. Fuente, who has a 37% marginal tax rate on ordinary income, is the sole shareholder and CEO of Furey Inc. She also holds a $1 million interest-bearing note issued by Furey. The corporation's current-year financial records show the following: Sales revenue Mrs. Fuente's salary Other operating expenses Interest paid on Mrs. Fuente's note Dividend distributed to Mrs. Fuente $1,879,000 (160,000) (414,000) (60,000) (100,000) Compute Mrs. Fuente's tax on her income from Furey. (Ignore payroll taxes in your calculations.) Multiple Choice $64,000 $91,200 $101,400 0 O $118,400
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