Paige Is Starting Paige's Poodle Parlor and Is Considering Alternative

question 59

Essay

Paige is starting Paige's Poodle Parlor and is considering alternative organizational forms.She anticipates the business will earn $100,000 from operating before compensating her for her services and before charitable contributions.Page,who is single,has $6,000 of income from other sources and other itemized deductions of $13,000.Her compensation for services will be $50,000.Charitable contributions to be made by the business are expected to be $5,000.Other distributions (dividends)to her from the business are expected to be $14,000.
Required: Compare her 2019 income tax assuming she operates the business as a proprietorship,an S corporation,and a C corporation.Ignore payroll and other taxes.

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Definitions:

Adaptive Coping Skill

Strategies or techniques that enable an individual to manage and navigate through stress or adversity in a healthy manner.

Humor

The quality of being amusing or comic, especially as expressed in literature or speech, contributing to human wellness and social interaction.

Adaptive Coping Skill

Adaptive coping skills are techniques or methods used to manage stress and adverse situations in a healthy and effective manner.

Journaling

The practice of regularly recording one's thoughts, experiences, and observations in a journal for personal reflection, planning, or creative expression.