Required: a. Calculate the net impact of the given items on Rochelle's 2022 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 2022 after-tax cash flow as a result of her interest in Megawatt.
Required: a. Calculate the net impact of the given items on Rochelle's 2022 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 2022 after-tax cash flow as a result of her interest in Megawatt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh1.
Account
Transcribed Image Text:Rochelle is a limited partner in Megawatt Partnership. For 2022, her schedule K-1
from the partnership reported the following share of partnership items:
Ordinary income
Section 1231 loss
Nondeductible expense
Cash distribution.
Required:
a. Calculate the net impact of the given items on Rochelle's 2022 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 2022
after-tax cash flow as a result of her interest in Megawatt.
$ 56,800
(4,100)
2,055
6,300
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 2022 taxable income. Assum
QBI deduction.
Net impact on taxable income
B
Transcribed Image Text:Rochelle is a limited partner in Megawatt Partnership. For 2022, her schedule K-1
from the partnership reported the following share of partnership items:
Ordinary income
Section 1231 loss
Nondeductible expense
Cash distribution
Required:
a. Calculate the net impact of the given items on Rochelle's 2022 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 2022
after-tax cash flow as a result of her interest in Megawatt.
$ 56,800
(4,100)
2,055
6,300
Complete this question by entering your answers in the tabs below.
Required A Required B.
Assume that Rochelle's marginal tax rate is 35 percent. Calculate her 2022 after-tax ci
Megawatt.
Note: Cash outflow should be indicated by a minus sign.
After-tax cash flow
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