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Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of which $250,000 is attributed
Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. Orie and Jane are contemplating incorporating their sole proprietorship. (Use thetax rate schedule).
a.Using the married-joint tax brackets and the corporate tax rateof 21 percent, find out how much current tax this strategy could save Orie and Jane.(Round your intermediate calculations and final answer to nearest whole dollar amount.)
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