True/False (5 Points)

Daniel, who is single, estimates that the profits of his business for the current tax year will be

$100,000; Daniel has no other sources of gross income. Since the highest tax rate (34%)

applicable to corporate taxable income of $100,000 is greater than the highest tax rate (28%)

applicable to individual taxable income of $100,000, the Federal income tax liability will be

less if Daniel conducts his business as a sole proprietorship rather than as a C corporation.

________