Foster Owns 27% of the Baxter Corporation,whose Ordinary Income Is

question 9

Short Answer

Foster owns 27% of the Baxter Corporation,whose ordinary income is $100,000.His salary for the year is $50,000.What amount must Foster pay in Social Security taxes if Baxter is a(n)
$\begin{array}{lc}\text {Corporation } & \text { S Corporation } \\a.\$-0- & \$ 3,825 \\b.\$ 3,825 & \$-0- \\c.\$ 3,825 & \$ 3,825 \\d.\$ 3,825 & \$ 7,650 \\e.\$ 3,825 & \$ 11,475\end{array}$

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Definitions:

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An American inventor and entrepreneur, known for developing many devices in fields such as electric power generation, mass communication, sound recording, and motion pictures.

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