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Stefan Has Opened a Sole Proprietorship Bicycle Shop

Question 57

Multiple Choice

Stefan has opened a sole proprietorship bicycle shop.The business shows a net income of $100,000.Stefan took a salary of $40,000.The remaining money is left in the bank.


A) At tax time, the business pays taxes on $100,000, and Stefan pays taxes on $40,000.
B) At tax time, the business pays taxes on $140,000.
C) At tax time, Stefan pays taxes on $140,000.
D) At tax time, the business pays taxes on $70,000, and Stefan pays taxes on $70,000.

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