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Please show work as soon as possible. Thank you. Logan, a 50-percent shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses
Please show work as soon as possible. Thank you.
Logan, a 50-percent shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $100,000 tax loss for the year, Logan's tax basis in his MG stock was $150,000 at the beginning of the year, and he received $75,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation? Multiple Choice $0 $6,000 o $12,000 $18,000Step by Step Solution
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