Sylvester, Single, Has $12,000 in Deductions When Filing His Income

question 18

Essay

Sylvester, single, has $12,000 in deductions when filing his income tax return. 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:

Socially Conscientious

Having an awareness of and concern for the problems and injustices of society.

Cyberdeviance

Actions that involve deviant behavior or activities conducted through digital platforms or the internet.

Computer Network

A set of interconnected digital devices that can share resources, data, and applications among users or systems.

Cyberterrorists

Individuals or groups that use online means to carry out acts of terror, often targeting critical infrastructure or spreading fear.