The taxpayer is the sole owner-employee of a small corporation that prepares tax returns. Before...
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Accounting
The taxpayer is the sole owner-employee of a small corporation that prepares tax returns. Before paying himself any salary or dividends or taking fringe benefits, the corporation has taxable income of $100,000. Summarize the tax consequences to both parties
a. paying a salary of $50,000
b. paying no salary but dividends of $50,000
c. providing $10,000 of fringe benefits and $40,000 of salary
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