In 2022, Pear Company has operating income of $420,000 before deducting any compensation to its owner/CEO,...

 

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In 2022, Pear Company has operating income of $420,000 before deducting any compensation to its owner/CEO, Steven. Pear Company also has $130,000 of operating expenses. a. If Pear Company is a C corporation, and Steven withdraws $96,000 as salary, what are the tax consequences in this situation? Please specify the taxpayer(s), the taxable income, and O amount of tax. Assume no other events with tax consequences occurred in 2022. (7 points) Answer: b. Pear Company is an S corporation, and Steven owns 30% of the company. If Steven also withdraws $96,000, what are the tax consequences in this situation? Please specify the taxpayer(s), taxable income, and amount of tax. Assume no other events with tax In 2022, Pear Company has operating income of $420,000 before deducting any compensation to its owner/CEO, Steven. Pear Company also has $130,000 of operating expenses. a. If Pear Company is a C corporation, and Steven withdraws $96,000 as salary, what are the tax consequences in this situation? Please specify the taxpayer(s), the taxable income, and O amount of tax. Assume no other events with tax consequences occurred in 2022. (7 points) Answer: b. Pear Company is an S corporation, and Steven owns 30% of the company. If Steven also withdraws $96,000, what are the tax consequences in this situation? Please specify the taxpayer(s), taxable income, and amount of tax. Assume no other events with tax

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