During the current year,Maroon Company had $125,000 net profit from operations.Belinda,the sole owner of Maroon,is in the 33% marginal tax bracket.Determine the combined tax burden for Maroon and Belinda under the following independent situations.(Ignore any employment taxes.)
a. Maroon Company is a C corporation and all of its after-tax income is distributed to Belinda.
b. Maroon Company is a proprietor ship and all of its after-tax income is withdrawn by Belinda
c. Maroon Company is an S corporation and all of its after-tax income is distributed to Belinda

Question

During the current year,Maroon Company had $125,000 net profit from operations.Belinda,the sole owner of Maroon,is in the 33% marginal tax bracket.Determine the combined tax burden for Maroon and Belinda under the following independent situations.(Ignore any employment taxes.)
 a. Maroon Company is a C corporation and all of its after-tax income is distributed to Belinda.
b. Maroon Company is a proprietor ship and all of its after-tax income is withdrawn by Belinda
c. Maroon Company is an S corporation and all of its after-tax income is distributed to Belinda

Quizplus · Accepted Answer

The Answer of During the current year,Maroon Company had $125,000 net profit from operations.Belinda,the sole owner of Maroon,is in the 33% marginal tax bracket.Determine the combined tax burden for Maroon and Belinda under the following independent situations.(Ignore any employment taxes.)
 a. Maroon Company is a C corporation and all of its after-tax income is distributed to Belinda.
b. Maroon Company is a proprietor ship and all of its after-tax income is withdrawn by Belinda
c. Maroon Company is an S corporation and all of its after-tax income is distributed to Belinda

During the Current Year,Maroon Company Had $125,000 Net Profit from Operations.Belinda,the