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Question: ire to avold tne corporate double tax on dividends 333...

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IRe to avold tne corporate double tax on dividends. 3-33 Income from C Corporations. M is the president and chief executive officer of MN, Inc., a corporation that is owned solely by M. During the current calendar year, MN, Inc. paid M a salary of $80,000, a bonus of $22,000, and dividends of $30,000. The corporations gross income is $350,000, and its expenses excluding payments to M are $225,000. a. Compute the corporations taxable income and determine its gross income tax. See inside back cover for corporate tax rates. Assuming Ms only other income is interest income of $12,500, determine Ms AGI. Does this situation represent double taxation of corporate profits? Explain b. c.
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