Part A: Jeremy is setting up a small business that makes snow skies. He can either operate the business as a sole proprietorship or he can incorporate as a regular C corporation. He expects that the business will have gross income of $80,000 in the first year with deductible cash expenses of $15,000. Each year the business will distribute all after tax cash flows to Jeremy. Compute Jeremy's after tax cash flows for 2021 assuming he operates as a sole proprietorship. Consider only federal income taxes and assume Jeremy is single with no dependents or other income and claims the standard deduction.

Part B: Now assume that Jeremy operates as a C corporation and the corporation pays out all after tax cash flows as a dividend to Jeremy.

Part C: How would your answer change if the business pays Jeremy a salary of $30,000. Consider only federal income taxes.