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pens Ition, 5,000 qualified dividend from a 10% owned domestic corpor tributes all of the after-tax income to David. David is unmarri ome for two dependent children, has no other income, and d mize deductions. Calculate total tax liability before tax credits mpany and David. $26,675 $27,377

pens Ition, 5,000 qualified dividend from a 10% owned domestic corpor tributes all of the after-tax income to David. David is unmarri ome for two dependent children, has no other income, and d mize deductions. Calculate total tax liability before tax credits mpany and David. $26,675 $27,377

FINANCIAL ACCOUNTING
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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Sir please help me sir urgently
David is the sole owner of ABC Company, a calendar year, cash basis LLC taxed as a sole proprietorship. During the current year, ABC has $500,000 of gross income and $300,000 of operating expenses. In addition, ABC has a $15,000 qualified dividend from a 10% owned domestic corporation and distributes all of the after-tax income to David. David is unmarried, maintains a home for two dependent children, has no other income, and does not itemize deductions. Calculate total tax liability before tax credits for ABC Company and David. $26,675 $27,377 $49,739 $50,441
Transcribed Image Text:David is the sole owner of ABC Company, a calendar year, cash basis LLC taxed as a sole proprietorship. During the current year, ABC has $500,000 of gross income and $300,000 of operating expenses. In addition, ABC has a $15,000 qualified dividend from a 10% owned domestic corporation and distributes all of the after-tax income to David. David is unmarried, maintains a home for two dependent children, has no other income, and does not itemize deductions. Calculate total tax liability before tax credits for ABC Company and David. $26,675 $27,377 $49,739 $50,441
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