Sole shareholder and employee of black corporation

Reference no: EM13149022

George Judson is the sole shareholder and employee of Black Corporation, a C corporation that is engaged exclusively in engineering services. During the year, Black has gross revenues of $300,000 and operating expenses (excluding salary) of $100,000. Further, Black Corporation pays George a salary of $150,000. The salary is reasonable in amount and George is in the 35% marginal tax bracket irrespective of any income from Black. Assuming that Black Corporation distributes all after-tax income as dividends, how much total combined income tax do Black and George pay in the current year? (Ignore any employment tax considerations.)

a. $64,875.

b. $70,000.

c. $74,875.

d. $81,375.

e. None of the above.

Reference no: EM13149022

Questions Cloud

How many ml of 4.50 m sodium hydroxide must be added : How many mL of 4.50 M sodium hydroxide must be added to 250 mL of a 0.200 M nitrous acid solution to make a buffer with pH = 3.00?

Sailboat manufactures lobbying to increase the tolls : Federal Express (a package company) lobbying the U.S. Department of Transportation to increase annual terminal fees at airports. Sailboat manufactures lobbying to increase the tolls on New York City’s George Washington Bridge.

Explain and identify the largest heat of combustion : Identify the largest heat of combustion, small heat of combustion and highest boiling point for: heptane(i), 3-methylhexane(ii), nonane(iii)

Setup null-alternate hypotheses to test average amount : Setup Null and Alternate hypotheses to test if average amount of soda in each can is less than 32 oz. Test the hypothesis using a = 0.05. What can you conclude from all this?

Sole shareholder and employee of black corporation : George Judson is the sole shareholder and employee of Black Corporation, a C corporation that is engaged exclusively in engineering services. During the year, Black has gross revenues of $300,000 and operating expenses (excluding salary) of $100,0..

Define degrees c freezing point acetic acid : find the molar mass of the unknown. 16.6 degrees C freezing point acetic acid and 3.90 degrees C*kg/mol?

How many grams of cl2 can be prepared : How many grams of Cl2 can be prepared from the reaction of 15.0g of MnO2 and 30.0g of HCl according to MnO2 + 4HCl >> MnCl2 + Cl2 + 2H2O

Find probability of getting at least six question correct : Guesses for all answer find Mean, variance, standard deviation, the probability of getting exactly six question correct and the probability of getting at least six question correct.

Accuracy of information included in footnotes : The accuracy of information included in footnotes accompanying the audited financial statements issued by a company whose shares are traded on a stock exchange is the primary responsibility of....

User Account

All Pages