Case study of bruin corporation


The Bruin Corporation, a C corporation, is owned 100%by John Bean and had taxable income in 2013 of $500,000. John is also an employee of the corporation. In December 2013, the corporation has decided to distribute $400,000 to John and has asked you whether it would be better to distributethe money as a dividend or salary. John is in the 39.6% marginal tax bracker. How would you respond to Bruin Corporation? Consider only income taxes for this problem

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Accounting Basics: Case study of bruin corporation
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