In 2000, Ms. Ennis, a head of household, contributed $50,000 in exchange for 500 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 500 shares for $117,400. Her only other investment income was an $8,600 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $590,000. Assume the taxable year is 2016. Use Individual tax rate schedules.
a. Compute Ms. Enis's taxable income, income tax and Medicare contribution tax for the year.
b. How would the computation change if Ms. Ennis acquired the Seta stock in 2014 instead of 2000?
Compute Taxable Income, Income Tax and Medicare Contribution Tax for each.

A corporation is a legal body that is owned by its shareholders, who also choose a board of directors to manage the organization's operations. The company is responsible for the business's operations and financial state.

What are corporations and their different types?

A corporation can be established as either a for-profit or a non-profit organization. The majority of businesses are for-profit organizations, and they are created to make money and give back to their shareholders in proportion to their ownership stakes in the company.

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