What is Jerry's income tax savings (rounded to the nearest dollar) for the first year if they organize the business as an S corporation?
A)$0
B)$1,344
C)$4,274
D)$4,389
E)$4,655

Question

Quizplus · Accepted Answer

An S corporation allows income to pass through to shareholders, avoiding double taxation. Jerry's tax savings would be the difference in tax liability between being taxed as a corporation and as an individual.

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