During the current year, Shrike Company had $220,000 net profit from operations. Carlos, the sole owner of Shrike, is in the 35% marginal tax bracket. Determine the combined tax burden for Shrike and Carlos under the following two independent situations. (Ignore any employment taxes.)
Definitions:
Land Adjacent
Property that is next to or bordering another property.
Future Interest
A person’s present right to property ownership and possession in the future.
Present Right
The current legal ability to exercise a right or claim to property, as opposed to a future or conditional interest.
Property Ownership
The legal right to possess, use, and dispose of real estate or personal property.
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