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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
30.  ![]()
LO.1, 2 In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole  owner,
Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has sig- nificant income from other sources and is in the 39.6% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent  situations.
a.     Azure is a C corporation and pays no dividends or salary to Sasha.
b.    Azure is a C corporation and distributes $75,000 of dividends to Sasha.
c.     Azure is a C corporation and pays $75,000 of salary to Sasha.
d.    Azure is a sole proprietorship, and Sasha withdraws $0.
e.     Azure is a sole proprietorship, and Sasha withdraws $75,000.
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