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Ruby is the owner of all shares of an S corporation. Ruby is considering receiving a salary of $80,000 from the business. She will pay 7.65% FICA taxes on the salary, and the S corporation will pay the same amount of FICA tax. If Ruby reduces her salary to $40,000, and takes an additional $40,000 as a distribution, how much total tax could be saved?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9983274

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