How much FICA and/or self-employment tax is Huxley required to pay on her compensation and his share of the Triple H income if Triple H is formed as an LLC (taxed as a partnership)? CORRECT ANSWER IS 15,006 (show steps to show how)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hadley and Huxley each owns 50 percent of Triple H. During the year, Huxley received $86,400 compensation for services he performed for Triple H during the year. He performed a significant amount of work for the entity, and he was heavily involved in management decisions for the entity (he was not a passive investor in Triple H). After deducting Huxley's compensation, Triple H reported taxable income of $39,600.

How much FICA and/or self-employment tax is Huxley required to pay on her compensation and his share of the Triple H income if Triple H is formed as an LLC (taxed as a partnership)?

CORRECT ANSWER IS 15,006 (show steps to show how) 

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