Complete this question by entering your answers in the tabs below. Required A Required B How would your computation change if Ms. Xie's salary was $522,000 and Xenon paid no dividends? Xenon's tax Ms. Xie's tax on salary Total income tax cost $ Amount 0 < Required A Required B >
Complete this question by entering your answers in the tabs below. Required A Required B How would your computation change if Ms. Xie's salary was $522,000 and Xenon paid no dividends? Xenon's tax Ms. Xie's tax on salary Total income tax cost $ Amount 0 < Required A Required B >
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 27P
Related questions
Question
Subject - account
Please help me.
Thankyou
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B
How would your computation change if Ms. Xie's salary was $522,000 and Xenon paid no dividends?
Xenon's tax
Ms. Xie's tax on salary
Total income tax cost
Amount
0
< Required A
Required B >
Transcribed Image Text:Ms. Xie, who is in the 37 percent tax bracket, is the sole shareholder and president of Xenon. The corporation's financial records show
the following:
Gross income from sales of goods
Operating expenses
Salary paid to Ms. Xie
Dividend distributions
Required:
a. Compute the combined tax cost for Xenon and Ms. Xie. (Ignore payroll tax.)
b. How would your computation change if Ms. Xie's salary was $522,000 and Xenon paid no dividends?
Complete this question by entering your answers in the tabs below.
Required A Required B
$ 1,623,000
(941,000)
(311,000)
(211,000)
Compute the combined tax cost for Xenon and Ms. Xie. (Ignore payroll tax.)
Xenon's tax
Ms. Xie's tax on salary
Ms. Xie's tax on dividend
Total income tax cost
$
Amount
< Required A
Required B >
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