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Item 4 of 6 (20 points) Mildred is a single person who is a 25 percent owner of a local business that operates using the

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Item 4 of 6 (20 points) Mildred is a single person who is a 25 percent owner of a local business that operates using the name Four Rivers. The business reports $500,000 of taxable business income for the year 2020. Assume the business income allocated to Mildred is qualified business income. For each of the independent parts a) through d) below, show your calculation of the following four items and provide a brief explanation of how you determined cach amount (i.c., why an amount was included or excluded from the calculation); 1. Mildred's self-employment tax liability (if any) related to Four Rivers. 2. Mildred's additional Medicare tax liability (if any) related to Four Rivers, 3. Mildred's qualified business income deduction (if any) related to Four Rivers. 4. Mildred's net investment income tax liability (if any) related to Four Rivers - assume no investment expenses. a) Assume Four Rivers is taxed as a partnership, and Mildred does not do any work for the business. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000 related to a salary she receives from working as an employee at an unrelated business b) Assume Four Rivers is taxed as a partnership, and Mildred works full-time for the business. In return, she receives a guaranteed payment of S100,000 that was already taker into account when determining the partnership's $500,000 of taxable business income. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000, which includes the $100,000 guaranteed payment from Four Rivers and $150,000 salary from working as an employee at an unrelated business. Because Mildred will owe self-employment tax on her guaranteed payment, include the guaranteed payment in your calculation of Mildred's self-employment tax liability, c) Assume Four Rivers is used as an Scorporation, and Mildred does not do any work for the business. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000 related to a salary she receives from working as an employee at an unrelated business d) Assume Four Rivers is taxed as an S corporation, and Mildred works full-time for the business. In return, she receives a salary of $100,000 that was already taken into account when determining the partnership's $500,000 of taxable business income. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000, which includes the $100,000 salary from Four Rivers and $150,000 salary from working as an employee at an unrelated business. Item 4 of 6 (20 points) Mildred is a single person who is a 25 percent owner of a local business that operates using the name Four Rivers. The business reports $500,000 of taxable business income for the year 2020. Assume the business income allocated to Mildred is qualified business income. For each of the independent parts a) through d) below, show your calculation of the following four items and provide a brief explanation of how you determined cach amount (i.c., why an amount was included or excluded from the calculation); 1. Mildred's self-employment tax liability (if any) related to Four Rivers. 2. Mildred's additional Medicare tax liability (if any) related to Four Rivers, 3. Mildred's qualified business income deduction (if any) related to Four Rivers. 4. Mildred's net investment income tax liability (if any) related to Four Rivers - assume no investment expenses. a) Assume Four Rivers is taxed as a partnership, and Mildred does not do any work for the business. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000 related to a salary she receives from working as an employee at an unrelated business b) Assume Four Rivers is taxed as a partnership, and Mildred works full-time for the business. In return, she receives a guaranteed payment of S100,000 that was already taker into account when determining the partnership's $500,000 of taxable business income. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000, which includes the $100,000 guaranteed payment from Four Rivers and $150,000 salary from working as an employee at an unrelated business. Because Mildred will owe self-employment tax on her guaranteed payment, include the guaranteed payment in your calculation of Mildred's self-employment tax liability, c) Assume Four Rivers is used as an Scorporation, and Mildred does not do any work for the business. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000 related to a salary she receives from working as an employee at an unrelated business d) Assume Four Rivers is taxed as an S corporation, and Mildred works full-time for the business. In return, she receives a salary of $100,000 that was already taken into account when determining the partnership's $500,000 of taxable business income. Before considering her business income allocation from Four Rivers, and the self-employment tax deduction (if any), Mildred's adjusted gross income is $250,000, which includes the $100,000 salary from Four Rivers and $150,000 salary from working as an employee at an unrelated business

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