Jeff and Ed form The Tax Museum as an LLC, which will be taxed as a partnership. They each own 50% of the LLC. Neither is employed by the LLC. In the first year of operation, the LLC generates $1 million of taxable income, all of which is ordinary, and pays $200,000 in distributions to the owners ($100,000 each to Jeff and Ed).  Assuming a 21% corporate tax rate, a 35% personal tax rate on ordinary income, and a 15% personal tax rate on dividends, how much tax will be paid in the first year? Group of answer choices   $0 tax for the LLC, $175,000 personal tax for each of Jeff and Ed $210,000 tax for the LLC, $15,000 personal tax for each of Jeff and Ed $210,000 tax for the LLC, $175,000 personal tax for each of Jeff and Ed $0 tax for the LLC, $15,000 personal tax for each of Jeff and Ed None of the above

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.