Raquel is an employee of Jones Company and owns a 30 interest in the company Her salary is $44,000 She also receives a $10,000 cash distribution from Jones During the current year, Joness operating income is $130,000 Identify the tax issue(s) posed by the facts presented Determine the possible tax ...

The issue in this case is determining Raquels taxable income The corre ...

Raquel is an employee of Jones Company and owns a 30% interest in the company. Her salary

Question:

Raquel is an employee of Jones Company and owns a 30% interest in the company. Her salary is $44,000. She also receives a $10,000 cash from Jones. During the current year, Jones’s operating income is $130,000.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...