Machela, a single individual, owns all the stock in Gordon Corporation, which reports taxable income of $67,000 The corporation distributes the $67,000 in earnings as a dividend Machela also receives a salary from the company of $55,000 She has itemized deductions for the year of $16,400 What are M...

A cash distribution to a noncorporate shareholder is generally taxable to the shareholder and is not ...

Machela, a single individual, owns all the stock in Gordon Corporation, which reports taxable income of $67,000.

Question:

Machela, a single individual, owns all the stock in Gordon which reports taxable income of $67,000. The distributes the $67,000 in earnings as a dividend. Machela also receives a salary from the company of $55,000. She has itemized deductions for the year of $16,400. What are Machela’s and Gordon Corporation’s tax liabilities for the year?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...