Question: A Corp., B Corp, and C. Corp are under common control. This year, John was paid $475,000 in supplemental wages by A Corp, and $375,000
A Corp., B Corp, and C. Corp are under common control. This year, John was paid $475,000 in supplemental wages by A Corp, and $375,000 in supplemental wages by B Corp. If C Corp. pays John a $350,000 year-end gross bonus, determine the amount of the bonus subject to federal income tax withholding at the mandatory flat rate. Assume that C Corp does not make the election to tax the full payment at the mandatory flat rate.
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