Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Has anyone been able to get the answer to this? Required information Problem 15-51 (LO 15-3) (The following information applies to the questions displayed below.]

Has anyone been able to get the answer to this? image text in transcribed

Required information Problem 15-51 (LO 15-3) (The following information applies to the questions displayed below.] Mackenzie is considering conducting her business, Mac561, as either a single-member LLC or as an S corporation. Assume her marginal ordinary income tax rate is 37 percent, her marginal FICA rate on employee compensation is 1.45 percent, her marginal self-employment tax rate is 2.9 percent, and any employee compensation or self-employment income she receives is subject to the 0.9 percent additional Medicare tax. Also, assume Mac561 generated $200,000 of business income before considering the deduction for compensation Mac561 pays to Mackenzie and Mackenzie can claim the full qualified business income deduction on Mac561's business income. Determine Mackenzies after-tax cash flow from the entity's business income and any compensation she receives from the business under the following assumptions: (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Problem 15-51 Part a a. Mackenzie conducted Mac561 as a single-member LLC. After-tax cash flow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hotel Operations Simulation And Auditing Manual

Authors: Gail E. Sammons, Cihan Cobanoglu

1st Edition

0131704613, 978-0131704619

More Books

Students also viewed these Accounting questions

Question

Define the goals of persuasive speaking

Answered: 1 week ago