Problem related to marginal tax rate

Assignment Help Accounting Basics

Reference no: EM13124636

Julio, age 50, is a U.S. citizen who has a 28% marginal tax rate. He has operated the A&B Automotive Parts Company for a number of years as a C corporation. Last year, A&B reported $200,000 of pre-tax profits, from which it paid $50,000 in salary and $25,000 in dividends to Julio. The corporation expects this year's pre-tax profits to be $300,000. To date, the corporation has created no fringe benefits or pension plans for Julio. Julio asks you to explain whether an S corporation election would reduce his taxes. How do you respond to Julio's inquiry?

Reference no: EM13124636

Questions Cloud

Solving alzebric linear equations : For a student club fund-raiser, the number of $2.00 raffle tickets printed was three times the number of $5.00 raffle tickets. If all of the tickets are sold, receipts from the $5.00 tickets will be $50.00 less than those from the $2.00 tickets.

What volume of a solution naoh is required : The density of a 50% solution of NaOH is 1.525 g/mL. What volume of a solution that is 50% by weight NaOH is required to make 1 Liter of 0.15M NaOH solution.

Hypothesis that mean number of customers waiting is greater : The hypothesis is that the average number of customers served per hour is 24 or less against the alternative hypothesis that the mean number of customers waiting is greater than 24.

Determining applications of linear equations : Supply and demand at $1.40 per bushel, the daily supply for oats is 850 bushels, and the daily demand is 580 bushels. When the price falls to $1.20 per bushel, the daily supply decreases to 350 bushels and the daily demand increases to 980 bushels..

Problem related to marginal tax rate : Julio, age 50, is a U.S. citizen who has a 28% marginal tax rate. He has operated the A&B Automotive Parts Company for a number of years as a C corporation.

How you would play the game : Magine you're teaching in an empty classroom. There are only four walls, your students and yourself (there is no white/blackboard either).

Find confidence interval for the true proportion of voters : A survey of 608 adults showed that 401 of them approved of the way city government was being run. Find a 99% confidence interval for the true proportion of voters who approve the way city government is being run.

What is the nullity of the transformation of tsuba : What is the nullity of the transformation of TsubA? What is the rank of the Transformation TsubA.

Computing its annual deloetion expense for the minerals : Which depletion method does Kent use to compute its annual deloetion expense for the minerals remove from the ground?

User Account

All Pages