Calculate potential increase or decrease in his annual tax

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Question

Mr. Olsen has a marginal tax rate on ordinary income of 37 percent. He currently earns $100,000 per year through a business operated as a sole proprietorship. If Mr. Olsen does not require current cash from the business, calculate the potential increase or decrease in his annual tax liability if the incorporates and operates the business through a regular corporation.

Reference no: EM132346154

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