What is Jerry's income tax savings (rounded to the nearest dollar) for the first year if they organize the business as a partnership?
A) $0
B) $1,386
C) $4,144
D) $4,389
E) $4,655

Question

Quizplus · Accepted Answer

In a partnership, income is passed through to the partners and taxed at their individual rates. Jerry's tax savings would be calculated based on the difference in tax liability between his individual rate and the corporate rate, resulting in a savings of $4,144.

What Is Jerry's Income Tax Savings (Rounded to the Nearest