Final Exercise for up to 25 points Jody has income and deductions as a financial consultant, essentially acting as CFO for a few companies, for 2019 that are summarized as follows: Net income from sole proprietorship $146,500 Assume Jody's other income equals her other deductions and that she pays income tax at a flat rate od 18% Jody pays for her own medical insurance coverage (for herself and her immediate family) at $950 per month and places $1,000 per month in a personal retirement account Jody's cash flow: Net income Social security and Medicare Medical Retirement Qualified business income deduction Federal income tax Cash flow Cash Flow Taxable income QB1 146,500 $ 146,500 $ 146,500 (20,403) 5 (10,202) S (10,202) (11,400) S (11,400) $ (11,400) (12,000) $ (12,000) S (12,000) (22,580) $ 112,898 (16,257) $ 90,319 86,440 Jody primary client, Kosmicki Ltd., has offered Cody a job with a salary of $112,000. The company will provide equivalent to a $ 401(k) plan up to $500 per month medical coverage, cover all business expenses, and match Jody contributions Estimate the value of unemployment coverage and workers' compensation coverage. If in doubt, use 3% and 4%, respectively, of salary. For 10 points, esitmate Jody's cash flow. Final Exercise for up to 25 points Jody has income and deductions as a financial consultant, essentially acting as CFO for a few companies, for 2019 that are summarized as follows: Net income from sole proprietorship $146,500 Assume Jody's other income equals her other deductions and that she pays income tax at a flat rate od 18% Jody pays for her own medical insurance coverage (for herself and her immediate family) at $950 per month and places $1,000 per month in a personal retirement account Jody's cash flow: Net income Social security and Medicare Medical Retirement Qualified business income deduction Federal income tax Cash flow Cash Flow Taxable income QB1 146,500 $ 146,500 $ 146,500 (20,403) 5 (10,202) S (10,202) (11,400) S (11,400) $ (11,400) (12,000) $ (12,000) S (12,000) (22,580) $ 112,898 (16,257) $ 90,319 86,440 Jody primary client, Kosmicki Ltd., has offered Cody a job with a salary of $112,000. The company will provide equivalent to a $ 401(k) plan up to $500 per month medical coverage, cover all business expenses, and match Jody contributions Estimate the value of unemployment coverage and workers' compensation coverage. If in doubt, use 3% and 4%, respectively, of salary. For 10 points, esitmate Jody's cash flow
