Amber Company has $400,000 in net income in 2012 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 35% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations. )

Question

Amber Company has $400,000 in net income in 2012 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 35% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations. )
Amber Company has $400,000 in net income in 2012 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 35% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations. )

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The Answer of Amber Company has $400,000 in net income in 2012 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 35% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations. )

Amber Company Has $400,000 in Net Income in 2012 Before