Should carol make the s election

Assignment Help Taxation
Reference no: EM13517076

Carol has recently incorporated her sole proprietorship and is considering making an S election. The corporation has $200,000 of gross revenue and expenses of $75,000 before Carol's salary. She plans to take a gross salary of $60,000 from the business and this will be her only income for the year. Compare the total tax burden for Carol and the corporation with and without the S election. Consider both income and employment taxes. Carol is single and does not itemize her deductions. She plans to reinvest all of the corporation's net income after taxes into the business. Based on tax burden alone for 2004, should Carol make the S election?

Reference no: EM13517076

Questions Cloud

Compare his tax costs for 2004 : Compare his tax costs for 2004 considering only income taxes if he is single and he has no other income. Which option do you recommend based solely on these tax costs?
How much is the pad compressed : A raw egg can be dropped from a third-floor window and land on a foam-rubber pad on the ground without breaking. How much is the pad compressed
What is the approximate delta of a long straddle composed : A 3-month call has a delta of 0.545.  What is the approximate delta of a long straddle composed of ten of these call contracts and twelve put contracts?
Explain what is the density of nitrogen : The barometer in the lab has a 626mm column of mercury and the thermometer reads 26degrees celsius. Given that air is 78% by volume nitrogen, what is the density of nitrogen in the lab. Can you do your experiment or should you just go home
Should carol make the s election : Carol is single and does not itemize her deductions. She plans to reinvest all of the corporation's net income after taxes into the business. Based on tax burden alone for 2004, should Carol make the S election?
What is the approximate length of the column : A column of soldiers, marching at 134 paces per minute, keep in step with the music of a band at the head of the column. what is the approximate length of the column
State the skeletal structure of the organic product : Draw the skeletal structure of the organic product obtained when benzyl bromide reacts with solid Mg in diethyl ether. Draw the skeletal structure of organic product obtained when the product from (a) above reacts with ethylene oxide followed by aci..
Which investment should the corporation make : It can invest in tax-exempt bonds that pay 4.5 percent interest or it can invest in taxable bonds that pay 6 percent interest. Which investment should the corporation make?
Determine the resistivity of the material of the wire : A piece of a wire, with the cross-sectional area of 0.5176 mm2 and 2.50 m long, has the resistance 1.28×10-1 ohms. What is the resistivity of the material of the wire

Reviews

Write a Review

 

Taxation Questions & Answers

  Find calculation and payment of company tax

There are no complex corporate transactions in this practice set beyond the calculation and payment of company tax. No dividends were paid during the period and tax effect accounting is beyond the scone of this nractice set.

  What type of penalty or incentive provision

What type of penalty or incentive provision do you think would significantly improve compliance with the Internal Revenue Code? Do think such a provision could be passed?

  Minimize the current years tax liability

Minimize the current years tax liability. That is, they would like to defer income when possible and take the largest deductions possible, a practice they have followed in the past.

  Determine what is the trust''s taxable income

Find how much income is each beneficiary entitled to receive - evaluate what is the trust's DNI and determine what is the trust's taxable income?

  What is the possible tax savings if they buy the house

Julie and Gus are married and have no children. They expect to have $380,000 of taxable income in the next year and are considering whether to purchase a house that would provide additional itemized deductions of $114,000 from mortgage interes..

  Compute quantco creditable foreign income taxes

Quantco, a domestic corporation, is an engineering consulting firm that has its main offices in San Diego, California. Because Quantco does a considerable amount of business in China

  Prepare a corrected classified balance sheet

Prepare a corrected classified balance sheet as of July 31, 2012, from the available information, adjusting the account balances using the additional information.

  Evaluate owls tax liability

Evaluate Owl's tax liability if Owl is a C corporation and evaluate Owl's tax liability if Owl is an S corporation

  Determine what is topazs taxable income

Topaz Corporation had the following income and expenses during the current year: Revenues $80,000 Expenses $30,000 Gains on sale of Capital assets $ 5,000 Losses on sale of Capital assets $(25,000) What is Topaz's taxable income

  Evaluate after-tax amount

Evaluate the after-tax amount Sarah will have at the end of five years under each alternative.

  Determine the appropriate taxation treatment

Apply the law to the facts by using established authorities to determine the appropriate taxation treatment. Review the application of the law from every perspective.

  Compute teppers 2013 cost recovery deductions

Compute Teppers 2013 cost recovery deductions related to the assets listed - Tepper reported taxable income

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd