In 2023, Purple Company reports $200,000 in net income before deducting anycompensation or other payment to its sole owner, Kirsten. Kirsten is single and sheclaims the $13,850 standard deduction for 2023 (she has no other deductions). PurpleCompany is Kirsten's only source of income. Ignoring any employment taxconsiderations, compute Kirsten's after-tax income if: (LO.1)a. Purple Company is a proprietorship and Kirsten withdraws $50,000 from thebusiness during the year; Kirsten claims a $37,230 deduction for qualifiedbusiness income.b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.c. Purple Company is a C corporation and the corporation pays Kirsten a salary of$158,000.

Problem aGiven:Net Income: $200,000Withdrawn by Kirsten: $50,000Qualified Business Income Deduction:…

Answered: In 2023, Purple Company reports…

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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Rochelle is a limited partner in Megawatt Partnership. For 2021, her schedule K-1 from the partnership reported the following share of partnership items: Ordinary income Section 1231 loss Nondeductible expense Cash distribution Required: $ 25,000 (3,000) 1,000 5,000 a. Calculate the net impact of the given items on Rochelle's 2021 taxable income. Assume that Rochelle does not qualify for the QBI deduction. b. Assume that Rochelle's marginal tax rate is 35 percent. Calculate her 2021 after-tax cash flow as a result of her interest in Megawatt. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the net impact of the given items on Rochelle's 2021 taxable income. Assume that Rochelle does not qualify for the QBI deduction. Net impact on taxable income Required A Required B >
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In 2022, Miranda records net earnings from self-employment of $171,000. She has no other income. Determine the amount of Miranda's self-employment tax and her AGI income tax deduction. In your computations, for the tax liability, round interim amounts to two decimal places and the final answer to the nearest whole dollar. For the AGI deduction, if necessary, use amounts that have been rounded to the nearest dollar. Miranda's self-employment tax is s and she has a deduction for AGI.
Arno and Bridgette are married and have combined W-2 income of $89,361. They received a refund of $128 when they filed their taxes. How much income tax did their employers withhold during the year? $9,582. $9,326. $9,454. The answer cannot be determined with the information provided.
3. Fess receives wages totaling $75,700 and has net earnings from self-employment amounting to $61,300. In determining her taxable self-employment income for the OASDI tax, how much of her net self-employment earnings must Fess count?
Compute the 2020 standard deduction for the following taxpayers. а. Ellie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part -time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000 c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500, and her interest income is $125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions. Please use Microsoft excel for calculations.
Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability and additional Medicare tax liability for the year
Compute the 2018 standard deduction for the following taxpayers. Margie is 15 and claimed as a dependent by her parents. She reports $800 in dividends income and $1,400 in wages from a part-time job. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500, and her interest income is $125. Frazier, age 55, is married but is filing a separate return. His wife Emma itemizes her deductions.
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2023, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $ 230,000 80,000 Description Taxable income Tax liability Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Cost $ 200,000 148,000 $ Amount Accumulated Depreciation $ 52,000 23,000 227,500
Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2021. The business has no tangible property and paid no W-2 wages. Required: b. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000. * I only need Requirement B to be solved
In 2020 Morgan is unmarried and has no dependents. She has self-employment income of $80,000 and $5,000 in dividend income. Her tax return also shows: $1,700 for self-employed health insurance premiums $11,304 for self-employment taxes $7,500 in medical expenses not related to her self employment $9,000 in charitable contributions of property not related to her self employment Based on this information, what is her adjusted gross income? Select one: a. $79,348 b. $71,996 c. $55,496 d. $77,648
Domestic

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