What is the net income tax effect if she incorporates her


Shelly runs a small business as a sole proprietorship. The business has average annual income of $60,000 and Shelly takes $30,000 out of the business for living expenses each year. If her marginal tax rate is 25 percent due to other income, what is the net income tax effect if she incorporates her business and takes the $30,000 as salary?

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