In 2018 Mark owns 85% of Keller & Sons. Keller & Sons is a law firm and distributes Mark $165,000. The firm has sales income of 3,600,000 and operating expenses of $1,000,000. The firm has property with an unadjusted basis of $800,000 and paid W2 wages for the year of $400,000. Mark is married and his taxable income (excluding any income from Keller & Sons) is $350,000. For each independent scenario below explain how the entity will be taxed and how Mark's return will be affected by the income from Keller & Sons. Show all work for any calculations.

a. Keller & Sons is a C-Corporation

b. Keller & Sons is a Partnership

c. Keller & Sons 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)

Answer for a sales 3600000 expences 1000000 profit 360000010000002600000 CORPORATION TAX 20 26000002... View the full answer