Martina, an Unmarried Individual with No Dependents, Owns and Operates

question 43

Essay

Martina, an unmarried individual with no dependents, owns and operates an office supply store as a sole proprietorship. The net income from the business is consistently $102,000 annually. Based solely on income taxes, consider whether the corporate form of business will produce tax savings. Assume Martina uses the standard deduction amount.

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Definitions:

Wage Gap

The wage gap refers to the difference in earnings between workers, often highlighting disparities based on gender, race, or other factors.

Federal Minimum Hourly

The lowest hourly wage that an employer can legally pay their employees, as mandated by federal law.

Wage Rate

The standardized amount of money paid for labor or services per unit of time (such as an hour or a month) or per unit of output.

Secondary Labor Market

A labor market segment characterized by lower pay, less job security, and fewer benefits compared to the primary labor market.