please help. answer questions and show work.

part 1 questions a-e

part 2 questions below

1. how might elaine minimize the tax implication of the C corporation status?

2. what advice would you give Elaine in choosing her business entity form?

. Entity Cholce for the Entrepreneur Blue-Eyed Beauty Supply is the talk of the town. When Elaine started her business, she had no idea it would evolve to be the number one supplier of cosmetology products in the region. While her business has been successfully operating as a sole proprietorship for many years, her legal counsel has urged her to form a separate legal entity for a variety of nontax reasons. Elaine has come to you for advice on the tax Implications of her decision. You have loaded her 2021 tax data. based upon provided assumptions into a model based on the following facts: Elaine is single and her sole source of income is from her business activities. It is expected that her business meets the definition of a trade or business for Qualified Business Income deduction purposes . Given her executive responsibilities, elaine is assuming a reasonable compensation amount of $100.000, As a C Corporation, the business will pay out all earnings after taxes are paid to Elaine, Elaine wants to minimize her overall tax burden while protecting her assets. Blue-Eyed Beauty Supply is in an industry enjoying a period of growth and investment, and Elaine wants to grow her business to take advantage of the expanding market. Using 2021 income tax rules, you have created the following Tableau visualization for the current tax year to help Elaine make a decision. Mouse over the graphs to reveal specific amounts for use in answering the following questions bly 300 58.894 527 810 300 5227 525.000 sa $10.00 95.000 $20.000 $50,000 $85.000 540 Ta Dollars Sole Prop 350.000 s Corp score Sch income W-2 Income Other Income 100.000 1000 239 eine wants to mini er overall tax burden while protecting her assets. joying a period of growth and investment, and Elaine wants to grow her busines arket. Using 2021 income tax rules, you have created the following Tableau visus aine make a decision. Mouse over the graphs to reveal specific amounts for use Blue Eyed Beauty Supply Corp $15.300 Sole Prop $21.194 s Corp $15.300 $8,894 $0 $5,000 $10.000 $15,000 $20.000 $25,00 Tax Dollars Sole Prop 150 000 10.597 Sch C Income W-2 Income Other Income Dividend Income Less: 50% Self-Emply Tax AGI Std Deduct Less: QB: Personal Taxable income Tax Other Taxes Entity-level Taxes W-2 Taxes Total Tax 139409 1240 2283 3922 17210 21:3- 39.00- 33 ne wants to minimize her overall tax burden while protecting her assets. Blue-Eyed Be Dying a period of growth and investment, and Elaine w grow her business to tal ket. Using 2021 income tax rules, you have created th ving Tableau visualization ne make a decision. Mouse over the graphs to reveal specific amounts for use in ansv- $8.894 $20,063 $17.810 $23,176 $44,257 $39,004 $38,476 $40,000 $45,000 00 $20,000 $25.000 $30,000 $35,000 Tax Dollars Incun er Income dend Income 50% Self-Emply Tax Sole Prop s Corp C Corp 150,000 0 0 100.000 100.000 0 42.350 0 0 33.456 10,592 0 0 139,403 142.350 133,455 12.400 12400 12.400 27881 2.470 0 99. 122 121.480 121.055 17.810 23.176 20.063 21194 10 0 0 0 8.894 15.300 15 300 39.004 38.475 44 257 Deduct s: QBI sonal Taxable income her Taxes city-level Taxes 2 Tasces tal Tax $1810 5.000 $20,000 $25.000 $80,000 Tax Dollars Sole Prop S Corp C Corp 150,000 0 0 100.000 100.000 . Sch C Income W-2 Income Other Income Dividend Income Less: 50% Self-Emply Tax AGI Std Deduct Less: QB1 Personal Taxable Income Tax Other Taxes Entity-level Taxes W-2 Taxes Total Tax 38,456 0 139.403 242.350 133 456 12400 12400 c 1 310 21194 20,062 co O D D 15 300 38-75 -4257 Entity-level Taxes W 200ES Total Tax 0 0 39,004 15.300 38 476 Entity Choice for the Entrepreneur - Part 1 (Static) Required: a. How much total tax does Elaine pay currently as a sole proprietorship? b. How much less Employment tax will Elaine pay if she incorporates and makes a timely S election as opposed to a sole proprietorship? c. How much of the business income will be issued to Elaine as a dividend under the C Corporation scenario? d. What is the Corporate-level tax due if she does not make an S Corporation election? e. Which option provides Elaine with the lowest overall tax? a Complete this question by entering your answers in the tabs below. Regd Rege Rega Reg b Reqc in any currently as a sole proprietorship