What is the total tax liability of ja


Scenario A - Jesse Aaron began his management consulting business on January 1, 2010. He organized the business as a C corporation, JA, Inc. During 2010, the corporation generated revenues of $950,000 and has operating expenses of $750,000 before any payments to Jesse. During 2010, JA, Inc. paid dividends to Jesse of $200,000. No salary was paid to Jesse. Assume that Jesse's other taxable income was $20,000, itemized deductions of $30,000, he is married (wife has no income) and has no children (assume 2010 tax rate schedule).
Ignoring any phaseouts of itemized deductions or exemptions, what is the total tax liability of JA, Inc. and Jesse for 2010?

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Accounting Basics: What is the total tax liability of ja
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