Problem LO Static
Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $ of which
$ is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. Use the tax rate
schedule.
Required:
a Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana
ignore any Social Security, Medicare, or selfemployment tax issues
b How much income should be left in the corporation?
Complete this question by entering your answers in the tabs below.
Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save
Moana ignore any Social Security, Medicare, or selfemployment tax issues
Current tax saved THE ANSWER IS NOT or
