The Bath Corporation, a C corporation, is owned 100% by Chris Roper and had taxable income in 2019 of 535000. Chris is also an employee of the corporation. In December 2019 , the corporation has decided to distribute 440000 to Chris and has asked you whether it would be better to distribute the money as a dividend or salary. Chris, a single taxpayer, is in the 37 % marginal tax bracket. How would you respond to Bath Corporation? Consider only income taxes for this problem. (Chris's taxable income exceeds $434,550.) Please show me how to get the numbers in each box. Thank you.
ACC-460-TO 101 Julisa Morales-Valenzuela : | 09/12/20 11:36 A S Homework: Topic 1 Score: 0 of 9 pts QI:1-19 (similar to) 2 of 9 (1 complete) HW Score: 10%, 10 of 10 i More Info The Bath Corporation, a C corporation, is owned 100% by Chris Roper and had taxable income in 2 distribute the money as a dividend or salary. Chris, a single taxpayer, is in the 37% marginal tax bra (Click the icon to view the tax rates for 2019.) ibute $440,000 to Chris and has asked you whether it would be bette he exceeds $434.550.) Calculate the taxes for Bath and Chris under each option. (For the purpose of this analysis, we will Distributed as dividend Distributed as salary Taxes for Bath Taxes for Chris Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses Ordinary income tax rates (up to 37% in 2019) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filling status as shown in the following table: Preferencial Rate Single Filing Jointly* Head of Household 0% Up to $30.375 Up to $78,750 Up to $52.750 > $39.375 but not over > $78,750 but not over > $52.750 but not over 15% $434,550 $488,850 $461,700 20% Over $434,550 Over $488.850 Over $461,700 Total tax liability * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $39,375 if married filing separately. Corporate Income Tax Rates: In a significant change in the corporate tax rate structure, the TCJA revised the corporate tax rates from a graduated rate structure with rates ranging from 15% to 35% to a flat rate of 21%. This revised corporate rate structure applies to tax years beginning after December 31, 2017. Print Done Enter any number in the edit fields and then click Check Answer. . 1 part part remaining Clear All Check Answer ACC-460-TO 101 Julisa Morales-Valenzuela : | 09/12/20 11:36 A S Homework: Topic 1 Score: 0 of 9 pts QI:1-19 (similar to) 2 of 9 (1 complete) HW Score: 10%, 10 of 10 i More Info The Bath Corporation, a C corporation, is owned 100% by Chris Roper and had taxable income in 2 distribute the money as a dividend or salary. Chris, a single taxpayer, is in the 37% marginal tax bra (Click the icon to view the tax rates for 2019.) ibute $440,000 to Chris and has asked you whether it would be bette he exceeds $434.550.) Calculate the taxes for Bath and Chris under each option. (For the purpose of this analysis, we will Distributed as dividend Distributed as salary Taxes for Bath Taxes for Chris Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses Ordinary income tax rates (up to 37% in 2019) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filling status as shown in the following table: Preferencial Rate Single Filing Jointly* Head of Household 0% Up to $30.375 Up to $78,750 Up to $52.750 > $39.375 but not over > $78,750 but not over > $52.750 but not over 15% $434,550 $488,850 $461,700 20% Over $434,550 Over $488.850 Over $461,700 Total tax liability * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $39,375 if married filing separately. Corporate Income Tax Rates: In a significant change in the corporate tax rate structure, the TCJA revised the corporate tax rates from a graduated rate structure with rates ranging from 15% to 35% to a flat rate of 21%. This revised corporate rate structure applies to tax years beginning after December 31, 2017. Print Done Enter any number in the edit fields and then click Check Answer. . 1 part part remaining Clear All Check
