| Without | Bonus | With | Bonus | ||||
| Profit before owner's compensation | 500,000 | 500,000 | |||||
| Owner's regular compensation | 200,000 | 200,000 | |||||
| Owner's bonus | 0 | 50,000 | |||||
| Total owner's compensation | 200,000 | (200,000) | 250,000 | (250,000) | |||
| Profit reportable on owner's individual tax return | 300,000 | 250,000 | |||||
| Plus Owner's compensation | 200,000 | 250,000 | |||||
| Taxable income on owner's individual tax return | 500,000 | 500,000 | |||||
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