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Problem 3-32 (LO. 1) Torsten owns 100% of Taupe Corporation (a calendar year corporation), which had net operating income of $420,000 and long-term capital gain

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Problem 3-32 (LO. 1) Torsten owns 100% of Taupe Corporation (a calendar year corporation), which had net operating income of $420,000 and long-term capital gain of $30,000 in the current year. Torsten has significant income from other sources and is in the 37% marginal tax bracket without regard to the results of Taupe Corporation. The corporation makes no distributions to Torsten during the year. Ignore the deduction for qualified business income and the 3.8% Medicare surtax on net investment income. The rates on qualified dividends are 0%, 15% and 20%. If an amount is zero, enter "O". a. If Taupe Corporation is an S corporation, it reports business income of $ and a long-term capital gain of $ on its Form 1120S. Torsten will receive a Schedule S-1 and he will have income of $ and long- term capital gain of $ on his individual income tax return. Torsten's tax liability with respect to the income from Taupe is $ b. If Taupe Corporation is a C corporation, it reports ordinary business income of $ on its Form 1120 and income tax of $ Torsten will receive no schedule or W-2 from the C corporation and he will have income of $ on his individual income tax return from Taupe Corporation. Torsten's tax liability with respect to the income from Taupe is

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