Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. she provides for her son, jonathon $8000 a year for

tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. she provides for her son, jonathon $8000 a year for college expenses. jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent.

how much pretax income does it currently take tawana to generate the $8000 given to jonathon?

if joanthon worked for his mothers sole proprietorship, what salary would she have to pay him to generate after taxes?

how much money would the strategy save?

this will save tawana ______ pretax and will save the family _____ after tax.

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

Numerical Methods In Finance

Authors: René Carmona, Pierre Del Moral, Peng Hu, Nadia Oudjane

2012th Edition

3642257453, 978-3642257452

More Books

Students also viewed these Finance questions