In 2020 Shawn owns 90% of Psych & Associates. Psych & Associates is a law firm...

   

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In 2020 Shawn owns 90% of Psych & Associates. Psych & Associates is a law firm and distributes to Shawn $200,000. The firm has sales income of 3,500,000 and operating expenses of $1,400,000. The firm has property with an unadjusted basis of $800,000 and paid W2 wages for the year of $500,000. Shawn is married and his taxable income (excluding any income from Psych & Associates) is $450,000. For each independent scenario below how the entity will be taxed and how Shawn's return will be affected by the income from Psych & Associates. a. Psych & Associates is a C-Corporation b. Psych & Associates is a Partnership c. Psych & Associates is an LLC, if you need more information please indicate what information you would need. d. How would your answer change (or not ) in part b if they were a manufacturing company instead of a law firm? In 2020 Shawn owns 90% of Psych & Associates. Psych & Associates is a law firm and distributes to Shawn $200,000. The firm has sales income of 3,500,000 and operating expenses of $1,400,000. The firm has property with an unadjusted basis of $800,000 and paid W2 wages for the year of $500,000. Shawn is married and his taxable income (excluding any income from Psych & Associates) is $450,000. For each independent scenario below how the entity will be taxed and how Shawn's return will be affected by the income from Psych & Associates. a. Psych & Associates is a C-Corporation b. Psych & Associates is a Partnership c. Psych & Associates is an LLC, if you need more information please indicate what information you would need. d. How would your answer change (or not ) in part b if they were a manufacturing company instead of a law firm?

Answer rating: 100% (QA)

aIf is a corporation then the amount of revenueoperating exps wagesincome is taxed in t... View the full answer