Determine how much tax mr smith should pay in total

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John Smith owns a small construction company ( 100% ownership ), which is organized as a corporate. The company had gross revenues of $300,000 in 2015, and business-related expenses ( including the cost of materials,labor,equipment rentals,etc) were $90,000.

The personal expense of John Smith in 2015 was $10,000. He also had $7500 as the total personal exemptions and all deductions. Assume that all of his income comes from the salary paid by his own company, and he received $120,000 as a salary from his own company in 2015.

Problem 1: Determine how much tax Mr. Smith should pay in total ( including that for the company) (Assume the single tax rate for John Smith, and ignore other factors not mentioned in the problem statement)

Reference no: EM132956475

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