16. Identify the tax issue or issues suggested by the following situation. State each issue in the form of a question.
Bill is the sole shareholder of Rich Co., a regular corporation. The corporation has $2,050,000 of income prior to making any payments to Bill.
1. At what amount of taxable income would Bill be better off as an "S" Corporation? Consider both federal and state income in your response.
As requested, the solution is stated in the form of questions to be considered for Bill's tax situation. There are six pertinent questions regarding Bill's corporation, profits and provision for income tax.