Problem 04-61 (LO 04-3) (Algo)Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave received $89,000 compensation for services heperformed for KBS during the year. He performed a significant amount of work for the entity, and he was heavily involved inmanagement decisions for the entity (he was not a passive investor in KBS). After deducting Dave's compensation, KBS reportedtaxable income of $35,600.How much FICA and/or self-employment tax is Dave required to pay on his compensation and his share of the KBS income if KBS isformed as a C corporation, an S corporation, or a limited liability company (taxed as a partnership) (ignore the 0.9 percent additionalMedicare tax)? How much FICA tax would the entity be required to pay on the compensation paid to Dave?Note: Do not round any percentage calculations. Round other intermediate calculations and final answers to the nearest wholedollar amount.C CorporationS CorporationLimited liability companyFICA Tax that Dave paysFICA Tax that Entity pays

Self-employed individuals have to pay self-employment tax. This tax is calculated from the net…

Answered: Dave and his friend Stewa

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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Assume: You are a financial adviser and are approached by a married couple, Tom, and Rita Brown. Both are 71 years old and Australian citizens by birth. While they live in Melbourne, their only son who is financially independent lives in Canberra. The following information is an extract of data you gathered as part of the fact-finding exercise during an initial client consultation with them: The couple has approached you to find out if they are eligible for age pension. list of assets for the current financial year Assets Amounts Income Home (Principal Residence) $700,000.00 Home Contents and Cars $57,000.00 Investment Property- net rental income of $7,000 $255,000.00 17,000.00 Bank account- interest Rate of 2% 50,000.00 1,000.00 Shares Portfolio 341,000.00 11,935.00 You are required to provide calculations for the means test (asset and the Income test) and use this to suggest old age pension…
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paads ssaan neready.frameworkhomeownership.org/Student/MyCourse.aspx?id%3Dfbd93f8d-8ac9-466a-ac3f-28d560154a88 4. Finding the Right Home DFinding the Right Home indi Caps Lock is on Question 4 of 8 When you have an exclusive contract with a real estate agent, you can Select the best answer. still work with other agents, as long as you disclose that you're doing it O work with only the seller's broker for 30 days Owork with only buyer's brokers Be Ho O work with only that agent 3 TOPICS o search 77'E R

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