Business, 19.02.2020 23:23 Jorjalilli1318

Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten’s only source of income. Ignoring any employment tax considerations, compute Kirsten’s after-tax income if:

a. Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $40,000 deduction for qualified business income ($200,000 x 20%).

b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.

c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 05:00

Personal financial planning is the process of creating and achieving financial goals? true or false

Answers: 1

Answer

Business, 22.06.2019 08:50

Comprehensive illustrative problem: mira's store on february 1 20a4 mica delaman opened astore that sells school supplies her main customer are the students and teachers of happy students school that is situated in front of her store. mira wanted to know the financial position of mira's store. mira knew you were studying accounting. so she asked for . 1. to start her business mira's opened a checking account in the name of mira's store . the statement of account from the bank shows that the checking account has a balance of 31,535 of december 31,20a4

Answers: 2

Answer

Business, 22.06.2019 09:40

Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?

Answers: 2

Answer

Business, 22.06.2019 10:40

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?

Answers: 3

Answer

You know the right answer?

Purple Company has $200,000 in net income for 2018 before deducting any compensation or other paymen...

Questions

Business, 01.07.2020 14:53

Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-through is equal to 0). The underlying pool of mor...