Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave received $92,0 performed for KBS during the year. He performed a significant amount of work for the entity, and management decisions for the entity (he was not a passive investor in KBS). After deducting Dave taxable income of $36,800. How much FICA and/or self-employment tax is Dave required to pay on his compensation and his formed as a C corporation, an S corporation, or a limited liability company (taxed as a partnership) Medicare tax)? How much FICA tax would the entity be required to pay on the compensation paid Note: Do not round any percentage calculations. Round other intermediate calculations and fir dollar amount. C Corporation S Corporation Limited liability company FICA Tax that Dave pays + FICA Tax that Entity pays
Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave received $92,0 performed for KBS during the year. He performed a significant amount of work for the entity, and management decisions for the entity (he was not a passive investor in KBS). After deducting Dave taxable income of $36,800. How much FICA and/or self-employment tax is Dave required to pay on his compensation and his formed as a C corporation, an S corporation, or a limited liability company (taxed as a partnership) Medicare tax)? How much FICA tax would the entity be required to pay on the compensation paid Note: Do not round any percentage calculations. Round other intermediate calculations and fir dollar amount. C Corporation S Corporation Limited liability company FICA Tax that Dave pays + FICA Tax that Entity pays
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram
Transcribed Image Text:Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave received $92,00
performed for KBS during the year. He performed a significant amount of work for the entity, and
management decisions for the entity (he was not a passive investor in KBS). After deducting Dave
taxable income of $36,800.
How much FICA and/or self-employment tax is Dave required to pay on his compensation and his
formed as a C corporation, an S corporation, or a limited liability company (taxed as a partnership)
Medicare tax)? How much FICA tax would the entity be required to pay on the compensation paid
Note: Do not round any percentage calculations. Round other intermediate calculations and fin
dollar amount.
C Corporation
S Corporation
Limited liability company
FICA Tax that Dave pays
+
FICA Tax that Entity pays
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