Question: Problem 3 - 5 1 ( LO 3 - 4 ) ( Algo ) points Tawana owns and operates a sole proprietorship and has a

Problem 3-51(LO 3-4)(Algo)
points Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $17,000 a
year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent.
Required:
a. What could Tawana do to reduce her family tax burden?
b. How much pretax income does it currently take Tawana to generate the $17,000(after taxes) given to Jonathon?
c. If Jonathon worked for his mother's sole proprietorship, what salary would she have to pay him to generate $17,000 after taxes
(ignoring any Social Security, Medicare, or self-employment tax issues)?
d. How much money would the strategy in part (c) save?
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How much money would the strategy in part (c) save?
 Problem 3-51(LO 3-4)(Algo) points Tawana owns and operates a sole proprietorship

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