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Author Question: Paige is starting Paige's Poodle Parlor and is considering alternative organizational forms. She ... (Read 77 times)

leilurhhh

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Paige is starting Paige's Poodle Parlor and is considering alternative organizational forms. She anticipates the business will earn $100,000 from operating before compensating her for her services and before charitable contributions. Page, who is single, has $6,000 of income from other sources and other itemized deductions of $12,000. Her compensation for services will be $50,000. Charitable contributions to be made by the business are expected to be $5,000. Other distributions (dividends) to her from the business are expected to be $14,000.

Required: Compare her current income tax assuming she operates the business as a proprietorship, an S corporation, and a C corporation. Ignore payroll and other taxes.


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Marked as best answer by leilurhhh on Sep 13, 2020

mk6555

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leilurhhh

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Reply 2 on: Sep 13, 2020
YES! Correct, THANKS for helping me on my review


T4T

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Reply 3 on: Yesterday
Excellent

 

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