Sylvester Is Single and Has No Dependents

question 71

Essay

Sylvester is single and has no dependents.His sole proprietorship averages net income of $125,000 annually.He needs $50,000 per year to live on.If he incorporates his business,would he pay more or less in total income taxes if he takes a salary of $50,000 for his living expenses? (Consider only income taxes.)

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Definitions:

Muscle Relaxant

Medications or substances used to relieve muscle spasms and tightness.

Diuretic

A type of medication that increases the excretion of water and salt from the body via the urine, used to treat conditions like hypertension and edema.

Sleep Pattern Disturbance

A disruption in the normal sleep cycle, leading to issues such as insomnia, excessive sleepiness, or irregular sleep patterns.

Personal Hygiene

Personal hygiene encompasses practices and routines aimed at maintaining cleanliness and promoting overall health, such as regular bathing and hand washing.