Question: You have set up your tax preparation firm as an incor TABLE 3.5 Corporate tax Tax Rate(%) rates, 2016 Taxable income ($) le income (5) 0-50,000 50,001-75,000 75,001-100,000 100,001-18,333,333 Over 18,333,333 34 You have set up your tex preparation firm as an incorporated business. You took $69.000 from the firm as your salary. The firm's taxable income for the year (net of your salary) was $30,200. Assume you pay personal taxes as an unmarried taxpayer. Use the tax rates presented in Table 3.5 and Table 3.7. Varles between 39 and 34 35 a. How much tax must be paid to the federal government, including both your personal taxes and the firm's taxes? (Round your answer to 2 decimal places.) Total taxes b. By how much will you reduce the total tax b f you cut your salary to $49,600, thereby leaving the firm with taxable income of $49,600? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Tax reduction FTABLE 3.7 Personal tax ates, 2016 c. Whet allocation will minimize the total tex bill? Hint: Think about marginal tex rates and the ability to shift income from a higher marginal bracket to a lower one. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Tax Rate(%) 100 Total tax bill Single Taxpayers 0-9,275 9.276-37,650 37,651 91,150 91.151-190, 150 190,151-413.350 413,351-415,050 415,051 and above Taxable income (5) Married Taxpayers Filing Joint Returns 0-18,550 18.551-75.300 75,301-151.900 151.901.231.450 231,451-413 350 413 351-466.950 465 951 and above 15.0 25.0 280 Late 33.0 35.0 ator Shaw transcribed image text View comments (1)