Determine how much income is to be taxed
Course:- Taxation
Reference No.:- EM13298415

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Office supplies unlimited is a small office supply outlet. The result of its operations is for the most recent year are summarizedas follows:

gross profit on sales: $95,000
cash operating expenses: 43,000
depreciation expense: 16,500
compensations to owner(s): 20,000
distribution of profit to owner(s): 5,000

determine how much income is to be taxed for:

-a sole proprietorship owned by H?

-partnership owned by L and P with agreement to share all itemsequally. P is guaranteed a salary of $20,000

- a corporation owned equally by N and K. K is employed bythe business and receives salary of $20,000.

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