What is the total tax liability for the corporation

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Reference no: EM131970703

LL began a consulting business on 1/1/2016. Her business is organized as a C (regular corporation)called L & L, Inc. Lucy owns 100% of the company's stock.

L & L, Inc.

Income and expense information for 2016:

Revenues 1020000

Operating expenses 870000

Qualified dividend paid to Lucy during year 100000

Lucy did not receive any salary from the business. Lucy and Jason Lindsey (married, filing joint return; no children)

Other information for 2016:

Jason's salary as a sales manager for a car dealership 142000

Total itemized deductions for couple 28000

A . What is the total tax liability for the corporation and the individuals?

B . Assume that Luc y's business was organized as an LLC rather than as a C corporation.The revenue and expense information is the same as that above. Lucy received adistribution of100,000 from the LLC. The couple's other income and deductions are unchanged.

C . What is the total tax liability for the LLC and the individuals?

D . What would you recommend that Lucy do to imporve the overall tax situation if she prefers to operate as a C corp?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131970703

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