1) An owner takes $35,000 out of her business as a salary for 2012. Compare the income and FICA or self-employment tax burdens of an individual who owns a business that has operating income of $60,000 if the business is
a. a C corporation
b. a sole proprietorship
2) Taxpayer B has the following gains and losses from property transactions.
Long-term capital gain  $5,000
Long-term capital loss  8,000
Section 1231 gain  11,000
Section 1231 loss  9,000
Short-term capital gain  2,000
Short-term capital loss  4,000
What is the effect on the taxpayer’s taxable income if Taxpayer B is:
a. a C corporation?
b. an individual?