Problem $3-52($LO $3-4)($Static$)$

Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $$250,000,$ of which

$$200,000$ is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. $($Use the tax rate

schedule.$)$

Required:

a$.$ Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana

$($ignore any Social Security, Medicare, or self$-$employment tax issues$).$

Note: Round your answers to $2$ decimal place.

b$.$ After considering your answer to part A$,$ if they proceed with the new strategy, how much income should be shifted to the

corporation?

Complete this question by entering your answers in the tabs below.

Required A

Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save

Moana $($ignore any Social Security, Medicare, or self$-$employment tax issues$).$

Note: Round your answers to $2$ decimal place.

Problem $3-52($LO $3-4)($Static$)$

Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $$250,000,$ of which

$$200,000$ is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. $($Use the tax rate

schedule.$)$

Required:

a$.$ Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana

$($ignore any Social Security, Medicare, or self$-$employment tax issues$).$

b$.$ After considering your answer to part A$,$ if they proceed with the new strategy, how much income should be shifted to the

corporation?

Complete this question by entering your answers in the tabs below.

After considering your answer to part A$,$ if they proceed with the new strategy, how much income should be shifted to the

corporation?

Income left

Problem $3-52($LO $3-4)($Static$)$

Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $$250,000,$ of which

$$200,000$ is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. $($Use the tax rate

schedule.$)$

Required:

a$.$ Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana

$($ignore any Social Security, Medicare, or self$-$employment tax issues$).$

Note: Round your answers to $2$ decimal place.

b$.$ After considering your answer to part A$,$ if they proceed with the new strategy, how much income should be shifted to the

corporation?

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save

Moana $($ignore any Social Security, Medicare, or self$-$employment tax issues$).$

Note: Round your answers to $2$ decimal place.