Compute how much tax is owed

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Q1) Compute how much tax is owed if a business you own earns $710,034 dollars pretax (and pays out all the net income to yourself); show the computation under 3 different forms of organizations: proprietorship, limited liability company, and corporation (assuming your personal income tax rate is 37% and the corporate income tax rate is 21%).

Q2) Compute how much you personally owe if a business you own goes bankrupt with $30,034 more in liabilities/debts than the company has in assets; show the amount under 3 different forms of organization: proprietorship, limited liability company, and corporation.

Reference no: EM133099725

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