Amber Company has $400,000 in net income in 2012 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 35% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations. )
Definitions:
Aversive Events
Unpleasant or undesirable occurrences that individuals seek to avoid or minimize, often motivating behavior changes.
Behavioral Disengagement
A coping mechanism involving withdrawal from or reduction of effort in attempting to achieve goals when they seem unattainable.
Dropping Class
The act of formally removing oneself from an academic course during a specified period without academic penalty.
Coping Strategies
Methods or techniques used by individuals to manage and mitigate stress or difficult situations.
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