T11F-Chp-13-1A-Entity-Choice-Handout

T11F-Chp-13-1A-Entity-Choice-Handout - 1 Chapter 13 Choice...

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Unformatted text preview: 1 Chapter 13 Choice of Entity- Handouts Spring, 2011 Howard Godfrey, Ph.D., CPA UNC Charlotte Copyright 2010, Dr. Howard Godfrey Edited May 3, 2011. T10-Chp-13-1A-Entity-Choice-Handout Combined tax for C corp. and owner for 2010. Do not consider income tax paid by owner on salary. All after-tax income is paid out as dividends. Gross Revenue $2,000,000 Salary to Owner (indiv.) (100,000) Other business expenses (900,000) Corporate taxable income $1,000,000 Corporate income tax rate Corporate income Corp. after-tax income (div) Shareholder tax rate Shareholder tax Total income tax Total Tax as % of Taxable Income Combined tax for C corp. and owner for 2010. Do not consider income tax paid by owner on salary. All after-tax income is paid out as dividends. Gross Revenue $2,000,000 Salary to Owner (indiv.) (100,000) Other business expenses (900,000) Corporate taxable income $1,000,000 Corporate income tax rate 34% Corporate income $340,000 Corp. after-tax income (div) Shareholder tax rate Shareholder tax Total income tax Total Tax as % of Taxable Income Combined tax for C corp. and owner for 2010. Do not consider income tax paid by owner on salary. All after-tax income is paid out as dividends. Gross Revenue $2,000,000 Salary to Owner (indiv.) (100,000) Other business expenses (900,000) Corporate taxable income $1,000,000 Corporate income tax rate 34% Corporate income $340,000 Corp. after-tax income (div) $660,000 Shareholder tax rate 15% Shareholder tax 99,000 Total income tax 439,000 43.90% Total Tax as % of Taxable Income Business in part 1 was a C Corporation , owned by Sue who is single, age 40 and claims the standard deduction. Her salary of $100,000 was deducted to get taxable income. Her total individual federal income tax? Ignore state tax. Compute her individual Federal income tax on: her salary, dividends, and corporate profit if applicable. Salary income $100,000 Dividend Income $660,000 Corporate Profit Gross Income $760,000 Standard Deduction Personal Exemption Taxable Income Dividend Income See Tax Table in Book Total personal income tax for 2009 Business in part 1 was a C Corporation, owned by Sue who is single, age 40 and claims the standard deduction. Her salary of $100,000 was deducted to get taxable income. Her total individual federal income tax? Ignore state tax. Compute her individual Federal income tax on: her salary, dividends, and corporate profit if applicable. Salary income $100,000 Dividend Income $660,000 Corporate Profit Gross Income $760,000 Standard Deduction ($5,700) Personal Exemption ($3,650) Taxable Income $750,650 Dividend Income See Tax Table in Book Total personal income tax for 2009 Business in part 1 was a C Corporation, owned by Sue who is single, age 40 and claims the standard deduction....
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This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

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T11F-Chp-13-1A-Entity-Choice-Handout - 1 Chapter 13 Choice...

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