Alice is a limited partner in Axel Partnership. Her share of the partnership's current ordinary business income was $100,000. She received a $60,000 cash distribution from the partnership on December 1. Alice qualifies for the QBI deduction, without regard to the wage or taxable income limitations. Assuming that Alice's marginal tax rate is 37%, calculate her after-tax cash flow from the partnership this year. Hint: the correct answer should be $30,400

Alice is a limited partner in Axel Partnership. Her share of the partnership's current ordinary business income was $100,000. She received a $60,000 cash distribution from the partnership on December 1. Alice qualifies for the QBI deduction, without regard to the wage or taxable income limitations. Assuming that Alice's marginal tax rate is 37%, calculate her after-tax cash flow from the partnership this year. Hint: the correct answer should be $30,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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