Karl Trudell and Tucker Brinkman began a new consulting business on January 1, 2019. They organized the business as a C corporation, KT, Inc. During 2019, the corporation was successful and generated revenues of $2,400,000. KT had operating expenses of $725,000 before any payments to Karl or Tucker. During 2019, KT paid dividends to Karl and Tucker in the amount of $180,000 each. Assume that Karl's wife eamed $130,000 from her job, they file a joint return, have itemized deductions of $40,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements (Click the icon to view the 2019 tax rate schedule for the Married filing jointly filing (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts) Requirement a. Compute the total tax liability of KT and Karl and his wife for 2019. (If an input field is not used in the table, leave the input field empty, do not select a label or enter a zero. Do not round in Only round the amounts you enter in the input fields to the nearest cent. Use the tax rate schedule for necessary tax calculations.) Begin by calculating the tax liability for KT. Minus: Taxable income Corporate tax Compute the tax liability of Kari and his wife. Adjusted gross income (AGI) Minus Deductions from AGI: (Click the icon (Click the icon Karl Trudell and Tucker Brinkman began a new consulting business on January 1, 2019. They organized the business as a C corporation, KT, Inc. During 2019, the corporation was successful and generated revenues of $2.400,000. KT had operating expenses of S725,000 before any payments to Karl or Tucker. During 2019, KT paid dividends to Karl and Tucker in the amount of $180,000 each. Assume that Karl's wife earned $130,000 from her job, they file a joint return, have itemized deductions of $40,000, and have no children. (Assume the qualified dividends tax rate is 15%) Read the requirements (Click the icon Compute the tax liability of Karl and his wife, Adjusted gross income (AGI) Minus: Deductions from AGI Taxable income Tax on taxable income without dividends (tax rate schedule) Tax on dividends Total tax (Individual) Requirement b. Instead of organizing the consulting business as a C corporation, assume Karl and Tucker organized the business as a lim Tucker during 2019. Compute the total tax liability of KT and Karl for 2019. Ignore any and additional tax on net investment income. (If an in a zero. Do not round intermediary calculations. Only round the amounts you enter in the input fields to the nearest cent. Use the tax ratesc Begin by calculating the tax liability for KT. LLC Choose from any list or enter any number in the input fields and then continue to the next question Type here to search O DII d* PSC F3 % (Click the icon to view the standard deduction amounts) dividends to Karl and Tucker in the amount of $180,000 each. Assume that Karl's wife earned $130,000 from her job, they file a joint return, have itemized deductions of $40,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Requirement b. Instead of organizing the consulting business as a C corporation, assume Karl and Tucker organized the business as a limited liability company. KT. LLC. KT made a distribution of $180.000 each to Tucker during 2019. Compute the total tax liability of KT and Karl for 2019. Ignore any and additional tax on net investment income. (If an input field not used in the table, leave the input seld amply, do not select a les a zero. Do not round intermediary calculations. Only round the amounts you enter in the input fields to the nearest cent. Use the tax rate schedule for necessary tax calculations. Enter a "o for items with a zero balance Begin by calculating the tax liability for KT, LLC. Minus: Taxable income Corporate tax Compute the tax liability of Karl for 2019. Adjusted gross income (AGI) Minus: Deductions from AGI: Choose from any list or enter any number in the input fields and then continue to the next question Click the (Click the $2,400,000. KT had operating expenses of $725,000 before any payments to Karl or Tucker. During 2019, KT paid dividends to Karl and Tucker in the amount of $180,000 each. Assume that Karl's wife earned $130,000 from her job, they file a joint return, have itemized deductions of $40,000, and have no children. (Assume the qualified dividends tax rate is 15%) Read the requirements Taxable income Corporate tax Compute the tax liability of Karl for 2019 Adjusted gross income (AGI) Minus Deductions from AGI: Taxable income Tax on taxable income without dividends (tax rate schedule) Tax on dividends Total tax (Individual) Choose from any list or enter any number in the input fields and then continue to the next question Type here to search o N Esc DIL cx 00 F3 F4 F5 F6 # A $ 4 % 5 3 & 7 1 2 3 6 Reference Married, Filing Joint and Surviving Spouse The tax is: If taxable income is: Not over $19,400 10% of taxable income. Over $19,400 but not over $78,950 $1.940.00 + 12% of the excess over $19,400 Over $78,950 but not over $168,400 $9,086.00 - 22% of the excess over $78,950. Over $168,400 but not over $321,450 .... $28,765.00 +24% of the excess over $168,400. Over $321,450 but not over $408,200 .... $65,497.00 + 32% of the excess over $321,450, Over $408,200 but not over $612,350 .... $93, 257.00 + 35% of the excess over $408,200. Over $612,350 $164,709.50 + 37% of the excess over $612,350. Personal and Dependency Exemptions Suspended: In conjunction with the increased standard deduction amount, the Tax Cuts and Jobs Act reduces the personal exemption amount to $0 for tax years from 2018 through 2025, effectively suspending the exemptions for these years. ax rate sch in the ing Print Done EN Reference A corporation's taxable income is subject to a flat tax rate of 21%. Print Done -) - - 201 Reference STANDARD DEDUCTION Filing Status 5 24400 3 18350 5 12.200 5 Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind: Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus 5350 or (2) 51.100 These amounts are 52.600 and 53,300, respectively for a taxpayer who is both aged and bind St 100- 31650 num Print Done UNG 605 6/30