Visit the Tax Foundation websiteLinks to an external site. and use the table of contents to navigate to the "2023 Federal IncomeTax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households" table. If a company is a sole-proprietorship, its earnings are taxed like an individual's income. We will use the "For Single Individuals" bracket. Using your corporation from Question 1 (which is not a sole proprietorship), let's analyze different tax scenarios:

Find the Pretax Income (i.e., Earnings before Tax or EBT) for you corporation in its most recent fiscal year. This can be found on the company's income statement. Pay close attention to the units defined in the Income Statement title to ensure you identify the numbers correctly (i.e., thousands, millions, etc.).

1. Use the Tax Foundation tax brackets for a single individual, calculate what your corporation would pay under a sole-proprietorship structure (i.e., its total tax bill) as well as its average tax rate. [10 points]
2. The current corporate tax rate is a flat 21% and the Biden Administration is proposing a flat 28% rate (i.e., it does not have tiers or brackets). Calculate what the corporation should pay under the current corporate tax rate as well as under the proposed Biden Administration plan (i.e., its tax bill under each plan).Identify the company's tax provision for the same fiscal year. This can be found on the Income Statement as the income tax expense line. Calculate the firm's actual tax rate paid in the fiscal year, calculated as Tax Provision divided by PreTax Income. Are the rates different? Note:If the tax provision for your firm is negative, that indicates the company received a tax refund (i.e., it did not pay taxes) [5 points]