Reference no: EM131220268
Tawana owns and operates a sole proprietorship and has a 40 percent marginal tax rate. She provides her son, Jonathon, $8,000 a year for college expenses. Jonathon works as a pizza delivery person every fall, and has a marginal tax rate of 15 percent.
a. What could Tawana do to reduce her family tax burden?
Employ her son in her sole proprietorship
Ask Jonathon to find a new job
Start a new enterprise
How much pretax income does it currently take Tawana to generate the $8,000 after taxes given to Jonathon?
If Jonathon worked for his mother’s sole proprietorship, what salary would she have to pay him to generate $8,000 after taxes (ignoring any Social Security, Medicare, or self-employment tax issues)?
How much money would this strategy save?
this strategy will save tawana $_____ pre tax and will save the family $_______ after tax.
|
Corporations alike with respect to the fiscal year election
: Ann is the sole shareholder of Salmon Corporation, a newly formed C corporation. Fran is the sole shareholder of Scarlet Corporation, a newly formed C corporation that is a personal service corporation. Both Ann and Fran plan to have their corporatio..
|
|
Determine the cost of goods sold for the period
: Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. Post the above transactions to T-accounts. Determine the cost of goods sold for the period.
|
|
Fair value of the bond-prepare the journal entries
: Purchased HTM investment on January 2, 2016, of $233,339 in Eiffel Corporation’s $240,000 face value, 3 percent bond, yielding 4 percent to maturity, interest paid annually on December 31. On December 31, 2017, the fair value of the bond is $180,000,..
|
|
Assuming that total dividends declared
: McNabb Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2011. Assuming that total dividends declared in 2011 were $64,000, and that the preferred stock is not cumulative bu..
|
|
What could tawana do to reduce her family tax burden
: Tawana owns and operates a sole proprietorship and has a 40 percent marginal tax rate. She provides her son, Jonathon, $8,000 a year for college expenses. Jonathon works as a pizza delivery person every fall, and has a marginal tax rate of 15 percent..
|
|
Prepare a report of business organization and policy
: Prepare a report of Business Organization and Policy on a detailed analysis of the acquisitions of British Home Stores (BHS)
|
|
Realize by accepting the special order
: At Bargain Electronics, it costs $31 per unit ($18 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46. A foreign wholesaler offers to buy 4,010 units at $29 each. Bargain Electronics will incur special shipping..
|
|
Cost volume profit analysis can plan many different roles
: Cost Volume Profit Analysis can plan many different roles in the overall management decision making process. Describe cost volume profit analysis and how management can use it in more than just financial analysis. Explain the main differences between..
|
|
Journal entry necessary to record the original investment
: Hanna Hark and Jamie Rice are watch repairmen who want to form a partnership and open a jewelry store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market val..
|