Solution-What effect does employing sheila e have on the

What effect does employing sheila e have on the corporation

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Reference no: EM132921008

Assume that Wendy and Lisa operate the music store as a corporation. They employ their daughter to answer the telephone, take messages, prepare invoice forms, work the register, set up the drum displays, and do light cleanup. During the year, she works 400 hours after school and during summer vacation and is paid $15 per hour, an amount reasonable for the tasks performed. Wendy and Lisa are the only stockholders of the corporation.

Question 1: If this is Sheila E's only income, what is her tax liability for the year?

Question 2: What effect does employing Sheila E have on the corporation's tax liability?

Question 3: Would it make a difference if the business was a sole proprietorship?

Question 4: What if they decided to pay Sheila E $40 per hour?

Reference no: EM132921008

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What effect does employing sheila e have on the corporation

Reference no: EM132921008

Reference no: EM132921008

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