Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next...

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Accounting

Moana is a single taxpayer who operates a sole proprietorship.She expects her taxable income next year to be $250,000, of which$200,000 is attributed to her sole proprietorship. Moana iscontemplating incorporating her sole proprietorship. (Use the taxrate schedule). a. Using the single individual tax brackets and thecorporate tax rate of 21 percent, find out how much current taxthis strategy could save Moana (ignore any Social Security,Medicare, or self-employment tax issues). (Round your intermediatecalculations and final answer to nearest whole dollar amount.)
b. How much income should be left in the corporation?

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aFirst of all comparing the single individual and corporate tax rate to minimise the income tax Moana has 50000 of taxable income not related to her sole proprietorship she is currently in the 22 percent tax bracket 22 of the See Answer

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