Martina, an Unmarried Individual with No Dependents, Owns and Operates

question 67

Essay

Martina, an unmarried individual with no dependents, owns and operates an office supply store as a sole proprietorship. The net income from the business is consistently $100,150 annually. Based solely on income taxes, consider whether the corporate form of business will produce tax savings. Assume Martina uses the standard deduction amount.

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Definitions:

Cannon-Bard Theory

A theory of emotion that suggests emotions and physiological responses occur simultaneously, not sequentially.

James-Lange Theory

A theory suggesting that emotions occur as a result of physiological reactions to events.

Two-factor Theory

A psychological theory that posits that emotions are based on two factors: physiological arousal and cognitive labeling of that arousal.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and its interpretation, based on environmental cues.