In 2014,Craig and Kathy Koehler Owned a Small Business Which

question 35

Multiple Choice

In 2014,Craig and Kathy Koehler owned a small business which was held as a proprietorship in Kathy's name.They were thinking of incorporating if that would lower their total tax liability.The Koehlers expected the company to earn $100,000 before taxes next year.They planned to take out salaries of $45,000,and to reinvest the rest in the business.Their personal deductions total $8,150 and they will file a joint return for their personal income.(1) What is their expected total tax liability as a proprietorship? (2) As a corporation?
(3) Based on current taxes,should they incorporate?

• A) $23,304.50;$14,675.00;Yes
• B) $14,675.00;$13,427.50;Yes
• C) $23,304.50;$13,427.50;Yes
• D) $15,212.50;$23,450.00;No
• E) $20,778.00;$23,450.00;No

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Definitions:

Motor Neurons

Nerve cells forming part of a pathway along which impulses pass from the brain or spinal cord to a muscle or gland.

Sensory Neurons

Neurons that transmit sensory information from the body to the central nervous system for interpretation.

Afferent Nerves

Nerves that carry sensory information from the body's periphery towards the central nervous system.

HNP

Herniated Nucleus Pulposus; a condition where the soft center of a spinal disc pushes through a crack in the tougher exterior casing.