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Jay owns 100% of Kaye Company. Assume that Jay, an individual, has $100,000 of taxable income (excluding any income associated with Kaye Company); therefore his

Jay owns 100% of Kaye Company.

Assume that Jay, an individual, has $100,000 of taxable income (excluding any income associated with Kaye Company); therefore his marginal rate of taxation is 24%. Jay has no recognized capital gains or losses in 2018.

Assume that Kaye Company is a sole proprietorship and distributes $50,000 of cash to Jay.

How much tax must Jay pay on this $50,000 distribution?

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