Paige is starting Paige's Poodle Parlor and is considering alternative organizational forms. she anticipates the business will earn $120,000 for operating before compensating her for her services. Page, who is single has $6,000 of income from other sources and other itemized deductions of $10,000. her compensation wages for services will be $60,000. other distributions (dividends) to her form the business are expected to be $14,000. (Use the 2018 tax law and 2018 marginal tax tables)

Required: compare her current income tax assuming she operates the business as an S corporation and a C corporation. Ignore payroll and other taxes.Note: first calculate the net income of the business entities. Once you have that information you can determine the taxable income under either the S-corp or corporate options.