Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Chapter 12, Problem 4AP
Ms. Kona owns a 10 percent interest in Carlton LLC. This year, the LLC generated $72,400 ordinary income. Ms. Kona’s marginal tax rate is 32 percent, and she does not pay SE tax on her LLC income.
- a. Compute the tax cost on Ms. Kona’s share of Carlton’s income assuming that she received a $35,000 cash distribution this year.
- b. 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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Chapter 12 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
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