What is this individual income tax liability

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Question - In 2018, a single individual operates a business as a sole proprietorship. The business sells shoes on the internet. Other than inventory, accounts receivable, and fully depreciated computers, the business has no assets. The business has revenue of $450,000 and expenses of $200,000 in a given year, of which $80,000 is for wages. The individual also earns $10,000 from an outside part-time job. The individual's marginal tax rate is 32% on the given income, and the corporate tax rate is 21%. Assume the individual does not itemize and that the standard deduction is $12,000. What is this individual's income tax liability?

a. 52,500

b. 53,760

c. 63,360

d. 66,560

Reference no: EM132470737

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