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Mathematics, 13.11.2019 05:31 squawk1738
Purple company has $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, kirsten. kirsten is single, and she claims the $12,200 standard deduction for 2019. purple company is kirstenās only source of income. ignoring any employment tax considerations, compute kirstenās after-tax income if:
a. purple company is a proprietorship and kirsten withdraws $50,000 from the business during the year; kirsten claims a $37,560 deduction for qualified business income.
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.
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Purple company has $200,000 in net income for 2019 before deducting any compensation or other paymen...
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