Chapter_13_Solutions - How much is the total...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
HA 4422 Review Session Chapter 13 Year 1 Gross income $100,000 Ordinary business expenses allowed $90,000 Cash taken by owners $10,000 Payroll to owner $0 Self-employment tax 92.35% at 15.3% Assume owners income tax rate is 25% Tax rate applicable to dividends In all cases assume owners basis is greater than cash taken 1 If business is a sole-proprietor: How much is the self-employment tax? How much is the owner's income tax? 2 If the business is a partnership:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: How much is the total self-employment tax of all owners? How much is the owners' income tax? 3 If the business is an S-corporation: How much is the self-employment tax? How much is the owner's income tax? 4 If the business is a C-corporation: How much is the self-employment tax? How much is the owner's income tax? If this is a Personal Service Corporation how much is the income tax?...
View Full Document

Ask a homework question - tutors are online