Orville and Olivia are single taxpayers who own and operate Brimstone Company.Orville owns 60% and Olivia owns 40% of Brimstone.Orville receives a salary of $30,000 and Olivia receives a salary of $70,000.Brimstone Company's taxable income is $150,000 before considering the salary payments to the owners.Brimstone pays a $50,000 dividend during the current year.Orville's net taxable income from other sources is $40,000 and Olivia's net taxable income from other sources is $10,000.Determine the total income tax liability for each of the following entity forms.
a.Brimstone Company is a corporation.
b.Brimstone Company is an S corporation.

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The Answer of Orville and Olivia are single taxpayers who own and operate Brimstone Company.Orville owns 60% and Olivia owns 40% of Brimstone.Orville receives a salary of $30,000 and Olivia receives a salary of $70,000.Brimstone Company's taxable income is $150,000 before considering the salary payments to the owners.Brimstone pays a $50,000 dividend during the current year.Orville's net taxable income from other sources is $40,000 and Olivia's net taxable income from other sources is $10,000.Determine the total income tax liability for each of the following entity forms.
a.Brimstone Company is a corporation.
b.Brimstone Company is an S corporation.

Orville and Olivia Are Single Taxpayers Who Own and Operate