Alpha Corporation generates taxable income of $100,000 per year. Beta Corporation generates taxable income of $75,000 per year.
a. Calculate regular income tax liability for Alpha and Beta.
b. How would your answers to part a change if John Smith is the sole shareholder of both Alpha and Beta?
c. Would the ownership of the two corporations impact their tax liability if Alpha and Beta each generated taxable income of $500,000? Provide calculations to support your conclusion.