Ms Kate a325 s11

Ms Kate a325 s11 - Ms Bruces Next Move An Entity Selection...

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Ms. Bruce’s Next Move: An Entity Selection Exercise Accountancy 325—Spring 2011 (1100) Kate Bruce is a small business owner who operates a cash basis, calendar year, California corporation. Ms. Bruce’s gross receipts from her service business were $129,350. Her business expenses before her salary, benefits, and retirement contributions were $37,000. Ms. Bruce received salary of $65,000, medical coverage costing $6,600, and 15% of her salary was contributed to a defined contribution retirement plan. The company, of course, paid the employer’s share of FICA, unemployment taxes at 3.2% (up to $7,200 of covered wages) and worker’s compensation coverage at 2%. In addition to the above, the company received interest income of $300 and dividend income of $400. Ms. Bruce’s filing status is head of household. Requirement A Calculate the taxable income of the corporation and the corporate income tax, assuming the corporation is a C corporation. Requirement B
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This note was uploaded on 05/21/2011 for the course ACCT 325 taught by Professor Ostrich during the Spring '11 term at San Diego State.

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Ms Kate a325 s11 - Ms Bruces Next Move An Entity Selection...

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