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Ms. Kona owns a 10 percent interest in Carlton LLC. This year, the LLC generated $66,400 ordinary income. Ms. Kona’s marginal tax rate is 32 percent, and she does not pay SE tax on her LLC income.
Required:
- Compute the tax cost on Ms. Kona’s share of Carlton’s income assuming that she received a $29,000 cash distribution this year.
- Compute the tax cost on Ms. Kona’s share of Carlton’s income assuming that she received no cash distribution this year.
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- Leona, whose marginal tax rate on ordinary income is 37 percent, owns 100 percent of the stock of Henley Corporation. This year, Henley generates $1 million of taxable income. If Henley wants to pay all of its after-tax earnings to Leona as a dividend, calculate the amount of the dividend payment. Calculate Leona’s tax due on the dividend computed in part a, and her after-tax cash flow from the dividend receipt. Compute the combined corporate and individual tax burden on Henley’s $1 million of current year income, and the effective combined tax rate on this income.Amy is a single taxpayer. Her income tax liability in the prior year was $3,803. Amy earns $50,000 of income ratably during the current year and her tax liability is $4,315. In order to avoid penalty, Amy's smallest amount of required annual withholding and estimated payments is: a.$4,747 b.$4,315 c.$3,423 d.$3,884 ( Incorrect) e.$3,803Dexter owns a large tract of land and subdivides it for sale. Assume thatDexter meets all of the requirements of § 1237 and during the tax year sellsthe first eight lots to eight different buyers for $22,000 each. Dexter’s basis in eachlot sold is $15,000, and he incurs total selling expenses of $900 on each sale. Whatis the amount of Dexter’s capital gain and ordinary income? Formulate your answerby constructing a spreadsheet using a format similar to that found in Example 10.
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- 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 23,000 227,500Problem 14-08 (Static) [LO 14-5] Mr. Olaf earned an $89.000 salary, and Mrs. Olaf earned a $40,330 salary. The couple had no other income and can't itemize deductions. Assume the taxable year is 2021. Use Individual Tax Rate Schedules and Standard Deduction Table Required: a. Compute their combined tax if they choose to file separate returns. b. Compute their tax if they file a joint return. Complete this question by entering your answers in the tabs below. 4 Required A Required B Compute their combined tax if they choose to file separate returns. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Mr. Olaf's Tax Mrs. Olaf's Tax Combined tax S s S Answer is complete but not entirely correct. Amount 12,880 X 3.200 10,089 Required 8 >Aram's taxable income before considering capital gains and losses is $71,000. Determine Aram's taxable income and how much of the income will be taxed at ordinary rates in each of the following alternative scenarios (assume Aram files as a single taxpayer). Required: Aram sold a capital asset that he owned for more than one year for a $5,220 gain, a capital asset that he owned for more than one year for a $610 loss, a capital asset that he owned for six months for a $1,420 gain, and a capital asset he owned for two months for a $1,010 loss. Aram sold a capital asset that he owned for more than one year for a $2,110 gain, a capital asset that he owned for more than one year for a $2,720 loss, a capital asset that he owned for six months for a $310 gain, and a capital asset he owned for two months for a $2,120 loss. Aram sold a capital asset that he owned for more than one year for a $2,610 loss, a capital asset that he owned for six months for a $4,420 gain, and a capital asset he…
- Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $75,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. Note: Round your intermediate calculations to the nearest whole dollar amount. a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction? 30600 and 25050 IS NOT CORRECT!!!!!!Chuck, a single taxpayer, earns $78,400 in taxable income and $13,800 in interest from an investment in City of Heflin bonds. A. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? B. What is his marginal rate if, instead, he had $40,000 of additional deductions?Allie received a $50,000 distribution from her 401(k) account this year that she established while working for Big Stories, Incorporated. Assume that her marginal ordinary tax rate is 24 percent. a. Allie is 45 and still employed with Big Stories, Incorporated. How much tax and penalty will Allie pay on the distribution? b. Allie is 56 and was terminated from Big Stories, Incorporated this year. How much tax and penalty will Allie pay on the distribution? c. Allie is 67 and retired. How much tax and penalty will Allie pay on the distribution?
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