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Mathematics, 07.10.2019 08:02 steven0448

Logan, a 50 percent shareholder in military gear inc. (mg), is comparing the tax consequences of losses from c corporations with losses from s corporations. assume mg has a $105,000 tax loss for the year, logan's tax basis in his mg stock was $152,500 at the beginning of the year, and he received $77,500 ordinary income from other sources during the year. assuming logan's marginal tax rate is 24%, how much more tax will logan pay currently if mg is a c corporation compared to the tax he would pay if it were an s corporation?

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