Homework Answers
Logan's pay, if MG is a C corporation = $19,680 ($82,000*24%)
Logan's pay, if MG is a S Corporation = $6,000 [($82,000-$57,000)*24%]
$114,000*50% = $57,000
Therefore he has to pay $13,680 ($19,680-$6,000) more.
Option $13,680 is the correct answer.
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