Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $300,000, of which $125,000 is attributed to the sole proprietorship. Orie and Jane are contemplating incorporating their sole proprietorship. (Use the tax rate schedule and corporate income tax brackets). a. Using the married-joint tax brackets and the corporate tax brackets, find out how much current tax this strategy could save Orie and Jane. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Current tax saved b. How much income should be left in the corporation? Income left
current tax saved is $5,000 and income left in the corporation is $75,000
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