Gina operates the business as an S corporation receiving a salary from the corporation of $70,000. The corporation distributes all of its remaining income to the shareholders.
GinaGina?,
a single? taxpayer, operates a business that produces $95,000 of income before any amounts are paid to her. She has no dependents and no other income. She has itemized deductions of $15,000.
a) Calculating taxable income for Gina under this scenario. ?(The tax year is 2016?.)
b) Enter the income tax that would be paid by Gina and the corporation under this? scenario, and compute the total income tax.? (Use the 2016 tax rate schedules for all tax calculations. Enter a? "0" if no tax is due. Do not round any interim calculations. Round your final tax liability to the nearest whole? dollar.)