What is the income tax imposed on the corporate income

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Q1. Bulldog Corporation reported taxable income of $635,000 this year, before any deduction for any payment to its sole shareholder and employee, Georgia Brown. Bulldog chose to pay a bonus of $190,000 to Georgia at year-end. The bonus meets the requirements to be "reasonable" and is therefore deductible by Bulldog. Georgia is subject to a marginal tax rate of 35 percent on the bonus. What is the income tax imposed on the corporate income earned by Bulldog and the income tax on the bonus paid to Georgia?

Q2. Acme Corporation has 1,000 shares outstanding. Joan and Bill are married, and each of them owns 60 shares of Acme. Joan and Bill's daughter, Shirley, also owns 60 shares of Acme. Joan is an equal partner with Jeri in the J&J partnership, and this partnership owns 50 shares of Acme. Jeri is not related to Joan or Bill. How many shares of Acme is Shirley deemed to own under the stock attribution rules?

Reference no: EM132861164

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