Robbie is the Vice President of Mailer Corporation. He owns 40 percent of Mailer, which is organized as an S corporation. Robbie's salary is $75,000, and he receives group-term life insurance and health and accident insurance that costs $3,000. Mailer's operating income without considering any payments or benefits that Robbie receives is $180,000.  identify the tax issue posed by the facts presented, and determine the possible tax consequences of each issue that you identify.

Discuss the law that applies to this issue and then answer the questions at the end of the paragraph.

n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the income effect. a.  Mr. Edwards earns $32,000 a year as an employee, and Mrs. Edwards doesn’t work.b.  Mr. Frank earns $22,000 a year as an employee, and Mrs. Frank earns $10,000 a year as a self-employed worker.c.  Mr. George earns $22,000 a year as an employee, and Mrs. George earns $10,000 a year as an employee.

The Blue ​Corporation, a C​ corporation, is owned​ 100% by Tim Morgan and had taxable income in 2019 of $535,000. Tim is also an employee of the corporation. In December 2019​, the corporation has decided to distribute $450,000 to Tim and has asked you whether it would be better to distribute the money as a dividend or salary. Tim​, a single​ taxpayer, is in the 37​% marginal tax bracket. How would you respond to Blue ​Corporation? Consider only income taxes for this problem. ​(Tim​'s taxable income exceeds $434,550​.) LOADING...   Calculate the taxes for Blue and Tim under each option. ​(For the purpose of this​ analysis, we will only consider the marginal and capital gain rates for Tim. Ignore additional taxes imposed on high income​ taxpayers.)     Distributed as dividend Distributed as salary Taxes for Blue     Taxes for Tim     Total tax liability       Enter any number in the edit fields and then click Check Answer.…

Gina owns all of Cherry Corporation's stock. Cherry pays her a $74,000 salary, which reduces its before-tax profit to $21,000. Cherry distributes all of its after-tax income to its shareholder, Gina. Gina is married, and her spouse receives $82,000 of salary from an unrelated employer. They file jointly, have $31,500 of itemized deductions, and have no dependents. Compute the total income tax that is paid. Ignore payroll taxes. (The tax year is 2022) View the standard deduction amounts. View the 2022 tax rate schedule for the Married filing jointly filing status. Read the requirement. a. Compute the total income tax that would be paid assuming Cherry is an S corporation. Ignore payroll taxes. Begin by calculating taxable income for Gina under this scenario. S corporation income Salaries Adjusted gross income Minus: 74,000 82,000 156,000 Qualified business income deduction Itemized deductions Taxable income 0 31,500 124,500 Now enter the income tax that would be paid by Gina and the…

Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $55,000 as a sales representative forPlanning Associates; $3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of $142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or taxowed for 2018.

Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $75,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction? 30600 and 25050 IS NOT CORRECT!!!!!!

Allie received a $50,000 distribution from her 401(k) account this year that she established while working for Big Stories, Incorporated. Assume that her marginal ordinary tax rate is 24 percent. a. Allie is 45 and still employed with Big Stories, Incorporated. How much tax and penalty will Allie pay on the distribution? b. Allie is 56 and was terminated from Big Stories, Incorporated this year. How much tax and penalty will Allie pay on the distribution? c. Allie is 67 and retired. How much tax and penalty will Allie pay on the distribution?

Pear, an individual, plans to start a small business, which will operate as a corporation. In year 0, she expects the corporation to generate an ordinary loss of $950,000. Subsequently, she expects the corporation to be profitable, and projects ordinary profit of $1.425,000 in year 1, and $2,375.000 in year 2. Pear's personal marginal tax rate on ordinary income is 37%. Assuming a corporate tax rate of 21% and a 10% discount rate, calculate the present value of expected tax costs on the business earnings for the first 3 years of operations if the business does not make an S corporation election Assume the excess business loss limitation does not apply. Round your discount rate calculations to three decimal places. O sas3,623 O $896,325 O $1.128,600 O $502.640

Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $75,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction? PLEASE DO NOT RESPOND WITH a) 30,600 and b) 25,050 IS NOT CORRECT!!!!!! IT IS INCORRECT.