a. Compute the total income tax that would be paid assuming Cherry is an S corporation. Ignore payroll taxes Begin by calculating taxable income for Gina under this scenario. S corporation income Salaries 74,000 82,000 156,000 Adjusted gross income Minus: Qualified business income deduction Itemized deductions Taxable income 0 31,500 124,500 Now enter the income tax that would be paid by Gina and the corporation under this scenario, and compute the total income tax. (Use the 2022 tax rate schedules for all tax calculations. Enter a "0" if no tax is due. Do not round any intermediary calculations. Round your final tax liability to the nearest whole dollar.) Income tax paid by Gina Corporation Amount of tax 18,624 0 Total income tax 18,624

a. Compute the total income tax that would be paid assuming Cherry is an S corporation. Ignore payroll taxes Begin by calculating taxable income for Gina under this scenario. S corporation income Salaries 74,000 82,000 156,000 Adjusted gross income Minus: Qualified business income deduction Itemized deductions Taxable income 0 31,500 124,500 Now enter the income tax that would be paid by Gina and the corporation under this scenario, and compute the total income tax. (Use the 2022 tax rate schedules for all tax calculations. Enter a "0" if no tax is due. Do not round any intermediary calculations. Round your final tax liability to the nearest whole dollar.) Income tax paid by Gina Corporation Amount of tax 18,624 0 Total income tax 18,624

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer items 4 & 5 with solution. Thank you!
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