Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah operates a business that produces $105,000 of income before any amounts are paid to her. She is masried, and har spouse recelves $92,000 of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sarah operates a business that produces $105,000 of income before any amounts are paid to her. She is masried, and har spouse recelves $92,000 of satary from an ureelated angioyer. They fie intly, have $32,000 of itemized deductions, and have no dependents. (The tax year is 2021.) (Clek the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Marned filing joint fling statiss.) Read the reguicement. if no tax is due. Do not round any intermediary calculations. Round your final tax lability to the nearest whole dolar.) Next compute the total income tax that would be paid assuming the additional facts under scenario (b). lognore payroli taxes: b. She operates the business as a C corporation receiving a salary from the corporation of $68,000. The coeporition distriudes its afier tax income to her as a dvisend. Renin hy ealcuintine taxable income for Sarah under this scenario. (Enter a " 0 for any zero amounts.) jointly, have $32,000 of itemized deductions, and have no dependents. (The tax year is 2021.) (Click the icon to virw the standard deducton amounts) (Click the ioon to view the 2021 tax rate schectule for the Married filing joint filing statusi.) Read the ceauicement b. She operates the business as a C corporation receiving a saiary from the corporation of 568,000 . The corporation distibutes to afer tax incoment to her as a oividend. Begin by calculating taxable income for Sarah under this scenario. (Enter a For for any zero amounti.) Sarah operates a business that produces $105,000 of income before any amounts are paid to her. She is narried, and her epouse recolver $92.000 of alary from an unrolated snstayer. They fin jointly, have $32,000 of itemized deductions, and have no dependents. (The tax year is 2021.) (Cilick the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Married fing joint fling statisc) Read the requirement. Now enter the income tax that would be paid by Sarah and the corporation under this scenario. (Use the 2021 tax rale schedules for ab tax casculatiant Do not round ary intemedary caiculitont. Round your final tax Lability to the nearest whole dollar.) lointly, have $32,000 of ilemized deductions, and have no dependents. (The tax year is 2021.) (Click the iccn to view the standard deduction arrounts.) (Cick the icon to view the 2021 tax rate schedule for tho Married hiling joint fing stafus. ) Read the regyirement: Total incomet tax 6. How would the total tax change in each of the first two requiremerits if the corporation made no payments fo the owrer other than the salary? taxi minus sign or parenthesos for a decraase in tax, ) Reference Reference Sarah operates a business that produces $105,000 of income before any amounts are paid to her. She is masried, and har spouse recelves $92,000 of satary from an ureelated angioyer. They fie intly, have $32,000 of itemized deductions, and have no dependents. (The tax year is 2021.) (Clek the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Marned filing joint fling statiss.) Read the reguicement. if no tax is due. Do not round any intermediary calculations. Round your final tax lability to the nearest whole dolar.) Next compute the total income tax that would be paid assuming the additional facts under scenario (b). lognore payroli taxes: b. She operates the business as a C corporation receiving a salary from the corporation of $68,000. The coeporition distriudes its afier tax income to her as a dvisend. Renin hy ealcuintine taxable income for Sarah under this scenario. (Enter a " 0 for any zero amounts.) jointly, have $32,000 of itemized deductions, and have no dependents. (The tax year is 2021.) (Click the icon to virw the standard deducton amounts) (Click the ioon to view the 2021 tax rate schectule for the Married filing joint filing statusi.) Read the ceauicement b. She operates the business as a C corporation receiving a saiary from the corporation of 568,000 . The corporation distibutes to afer tax incoment to her as a oividend. Begin by calculating taxable income for Sarah under this scenario. (Enter a For for any zero amounti.) Sarah operates a business that produces $105,000 of income before any amounts are paid to her. She is narried, and her epouse recolver $92.000 of alary from an unrolated snstayer. They fin jointly, have $32,000 of itemized deductions, and have no dependents. (The tax year is 2021.) (Cilick the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Married fing joint fling statisc) Read the requirement. Now enter the income tax that would be paid by Sarah and the corporation under this scenario. (Use the 2021 tax rale schedules for ab tax casculatiant Do not round ary intemedary caiculitont. Round your final tax Lability to the nearest whole dollar.) lointly, have $32,000 of ilemized deductions, and have no dependents. (The tax year is 2021.) (Click the iccn to view the standard deduction arrounts.) (Cick the icon to view the 2021 tax rate schedule for tho Married hiling joint fing stafus. ) Read the regyirement: Total incomet tax 6. How would the total tax change in each of the first two requiremerits if the corporation made no payments fo the owrer other than the salary? taxi minus sign or parenthesos for a decraase in tax, ) Reference Reference

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Remote Auditing A Quick And Easy Guide For Management System Auditors

Authors: Denise Robitaille

1st Edition

1932828311, 978-1932828313

More Books

Students also viewed these Accounting questions