Creating lowest overall combined tax liability

Reference no: EM1362798

Mary (Who is single with no dependants and who does not itemize) owns 100% of Beezer Tweezer Co, which is organized as a C-Corporation. Beezer Tweezer has $400,000 of taxable income in 2011 and Mary has $34,500 of outside taxable income before any wage compensation from Beezer Tweezer. Assuming reasonable compensation for Mary's services to Beezer Tweezer would fall in the range of $150,000 to $250,000, which of the following wage distribution amounts to Mary would result in the lowest overall combined tax liability (For Mary and Beezer Tweezer)?

A) $150,000

B) $200,000

C) $250,000

D) Taking no wages from Beezer Tweezer.

Reference no: EM1362798

Questions Cloud

Sources of credible nutritional information : What criteria can the readers use to determino sources of credible nutritional information?

Show advantages and disadvantages of data auditing : What would be the advantages and disadvantages of data auditing and how would these advantages and disadvantages affect stakeholders in the organization?

Accounting research methodology : Please explain to me the accounting research methodologies of deductive, inductive and pragmatic research methods. Give me some examples to reinforce these methods.

Illustrate what are the consumer surplus : Illustrate what are the consumer surplus, producer surplus and the social welfare in the market.

Creating lowest overall combined tax liability : Mary (Who is single with no dependants and who does not itemize) owns 100% of Beezer Tweezer Co, which is organized as a C-Corporation. Beezer Tweezer has $400,000 of taxable income in 2011 and Mary has $34,500 of outside taxable income before any..

Calculate life insurance to protect financial future : If you are a family of four how would you calculate how much life insurance you would need to protect your financial future?

Show performance-based budgeting process : Explain the three distinct phases of the PPBS process and the specific product each phase produces. What do you think are the primary issues your service will address in its POM

Explain what is the processing time per unit for product : Explain What is the processing time per unit for each product and What is the number of annual time (week hour needed) for each product

Risk factors and approaches to risk reduction : If we have the information about risk factors and approaches to risk reduction, why do some people continue making unhealthy choices? Please give two examples to explain.

User Account

All Pages