Foster Owns 27% of the Baxter Corporation, Whose Ordinary Income $\begin{array} { c l } \text { Corporation } & \text { S Corporation } \\\end{array}$

question 13

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)
?
$\begin{array} { c l } \text { Corporation } & \text { S Corporation } \\\end{array}$
A) $\begin{array} { c l } \$ - 0 - &&&& \$ 3,825 \\\end{array}$
B) $\begin{array} { c l } \$ 3,825 &&&& \$ - 0 - \\\end{array}$
C) $\begin{array} { c l } \$ 3,825 &&&& \$ 3,825 \\\end{array}$
D) $\begin{array} { c l } \$ 3,825 &&&& \$ 7,650 \\\end{array}$
E) $\begin{array} { c l } \$ 3,825 &&&& \$ 11,475\end{array}$

• A)\(\begin{array} { c l } \$ - 0 - &&&& \$ 3,825 \\\end{array}\)
• B)\(\begin{array} { c l } \$ 3,825 &&&& \$ - 0 - \\\end{array}\)
• C)\(\begin{array} { c l } \$ 3,825 &&&& \$ 3,825 \\\end{array}\)
• D)\(\begin{array} { c l } \$ 3,825 &&&& \$ 7,650 \\\end{array}\)
• E)\(\begin{array} { c l } \$ 3,825 &&&& \$ 11,475
• \end{array}\)