Instructor%20Notes%20-%20Differences%20in%20Entities%20Comparison%20Example-1

Instructor%20Notes%20-%20Differences%20in%20Entities%20Comparison%20Example-1

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Comparison of Entities Example C Corp S Corp Partnership Revenues 200,000 200,000 200,000 200,000 COGS 25,000 25,000 25,000 25,000 Gross Margin 175,000 175,000 175,000 175,000 Salary 50,000 50,000 - - Advertising 2,000 2,000 2,000 2,000 Payroll Taxes 3,825 3,825 - - Office Expenses 2,000 2,000 2,000 2,000 Rent 6,000 6,000 6,000 6,000 Depreciation 5,000 5,000 5,000 5,000 Total Expenses 68,825 68,825 15,000 15,000 Net Income Before Taxes 106,175 106,175 160,000 160,000 Corporate Tax 24,350
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Unformatted text preview: - - - Net Income 81,826 106,175 160,000 160,000 Distributions* 30,000 45,000 100,000 160,000 SS & Medicare Tax to Individual 3,825 3,825 24,480 24,480 Income Tax to Individual 20,000 33,133 34,204 34,204 Total Taxes Paid 52,000 40,783 58,684 58,684 Net to Partner/Shareholder 56,175 58,042 41,316 101,316 Amount Remaining in Entity 51,826 61,175 60,000 - Total 108,001 119,217 101,316 101,316 * Dividends distributions are not deductible. Sole Proprietor...
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