Mary (who is single with no dependants [1 personal exemption - $3,800] and who does not itemize [standard deduction - $5,950]) owns 100% of Beezer Tweezer Co, which is organized as a C-Corporation. Beezer Tweezer has $400,000 of taxable income in 2012 and Mary has $34,500 of outside ordinary income before any wage compensation from Beezer Tweezer. Assuming reasonable compensation for Mary’s services to Beezer Tweezer would fall in the range of $150,000 to $250,000, which of the following wage distribution amounts to Mary would result in the lowest overall combined federal income tax liability for Mary and Beezer Tweezer (ignore any payroll taxes)?
D) Taking no wages from Beezer Tweezer.
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