Question: LO . 1 In 2 0 2 3 , Purple Company reports $ 2 0 0 , 0 0 0 in net income before deducting

LO.1 In 2023, Purple Company reports $200,000 in net income before

LO.1 In 2023, Purple Company reports $200,000 in net income before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $13,850 standard deduction for 2023(she has no other deductions). Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income if:
a. Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $37,230 deduction for qualified business income.
b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.
c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000
deducting any compensation or other payment to its sole owner, Kirsten. Kirsten

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