Steve Has Opened a Sole Proprietorship Bicycle Shop

Multiple Choice

Steve has opened a sole proprietorship bicycle shop.The business shows a net income of $100,000.Steve took a salary of $40,000.The remaining money is left in the bank.

A) at tax time, the business pays taxes on $100,000 and Steve pays taxes on $40,000
B) at tax time the business pays taxes on $140,000
C) at tax time Steve pays taxes on $140,000
D) at tax time the business pays taxes on $70,000 and Steve pays taxes on $70,000