Solution-How much total combined income tax

How much total combined income tax

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Reference no: EM13343089

George Judson is the sole shareholder and employee of Black Corporation, a C corporation that is engaged exclusively in engineering services. During the year, Black has gross revenues of $420,000 and operating expenses (excluding salary) of $200,000. Further, Black Corporation pays George a salary of $190,000. The salary is reasonable in amount and George is in the 35% marginal tax bracket irrespective of any income from Black. Assuming that Black Corporation distributes all after-tax income as dividends, how much total combined income tax do Black and George pay in the current year? (Ignore any employment tax considerations.)

a. $66,675.
*b. $79,925.
c. $83,325.
d. $87,500.
e. None of the above.

Reference no: EM13343089

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How much total combined income tax

Reference no: EM13343089

Reference no: EM13343089

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