Basu owns 100% of an S corporation. This year, the corporation paid Basu a salary of $100,000.

Question:

Basu owns 100% of an S corporation. This year, the corporation paid Basu a salary of $100,000. His share of S corporation income for the year was $42,000. Assuming that this is Basu’s only income for the year, compute any resulting payroll and self-employment income taxes.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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