Kenneth Tully and Toby Benning began a new consulting (Click the icon to view the 2020 tax rate schedule for the business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation Married filing jointly filing status.) was successful and generated revenues of $1.5 million. KT (Click the icon to view the corporation tax rate had operating expenses of $750,000 before any payments information.) to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. (Click the icon to view the standard deduction amounts) Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children (Assume the qualified dividends tax rate is 15%.) Read the requirements Requirement a. Compute the total tax liability of KT, Inc. and Kenneth and his wife for 2020. Ignore the net investment income tax. (Enter amounts in dollars and not in millions. 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 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.) Begin by calculating the tax liability for KT, Inc. Minus: (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160.000 from her job, they file a joint retum, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Begin by calculating the tax liability for KT, Inc. Minus Taxable income Corporate tax Compute the tax liability of Kenneth and his wife. (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They Organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife eamed $160,000 from her job, they file a joint retum, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Compute the tax liability of Kenneth and his wife, Adjusted gross income (AGI) Minus: Deductions from AGI: (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children (Assume the qualified dividends tax rate is 15%) Read the requirements Adjusted gross income (AGI) Minus: Deductions from AGI: Taxable income Tax on taxable income without dividends (tax rate schedule) Tax on dividends Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements. (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Tax on dividends Total tax (Individual) Requirement b. Instead of organizing the consulting business as a C corporation, assumo Kenneth akd Toby organized the business as a limited liability company, KT, LLC, KT made a distribution of $195,000 each to Kenneth and Toby during 2020. Compute the total tax liability of KT, LLC and Kenneth for 2020. Ignore any additional tax on net investment income, and ignore the qualified business income deduction (Enter amounts in dollars and not in millions. If an input field is not used in the tablo, leave the input field empty, do not select a label or enter 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.) (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Begin by calculating the tax liability for KT, LLC. Minus A Taxable income Corporate tax Comite the fav shilin kannath in 2020 Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%) Read the requirements (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Corporate tax Compute the tax liability of Kenneth for 2020 ho Adjusted gross income (AGI) Minus Dedictions from AGE Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%) Read the requirements (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Adjusted gross income (AGI) Minus: Deductions from AGE: Taxable income Tax on taxable income without dividends (tax rate schedule) Tax on dividends Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Minus: Doductions from AGI: Taxable income Tax on taxable income without dividends (tax rate schedulo) Tax on dividonds Total tax (Individual) e Kenneth Tully and Toby Benning began a new consulting (Click the icon to view the 2020 tax rate schedule IUI business or a C corporal successful Requirements operating el Kenneth or amounts.) and Toby in Kenneth's W a. Compute the total tax liability of KT, Inc. and Kenneth and his wife for 2020, return, have Ignore the net investment income tax. children. (A b. Instead of organizing the consulting business as a C corporation, assume Read the re ws Kenneth and Toby organized the business as a limited liability company, KT; LLC. KT made a distribution of $195,000 each to Kenneth and Toby during 2020. Compute the total tax liability of KT, LLC and Kenneth for 2020. Ignore any additional tax on net investment income, and ignore the qualified Requiremel business income deduction ent income tax Hempty: do not seled he input fields to the Print Done Begin by ca Minus click the icon to view the 2020 tax rate sch enneth Tully and Toby Benning began a new consulting sif 4 ucd Reference oper Kenil and Kend retur child Read Married, Filing Joint and Surviving Spouse If taxable income is: The tax is: Not over $19,750 10% of taxable income Over $19,750 but not over $80,250 $1,975.00 + 12% of the excess over $19,750, Over $80.250 but not over $171,050 $9,235.00 + 22% of the excess over $80,250 Over $171,050 but not over $326,600 $29,211.00 +24% of the excess over $171,050, Over $326,600 but not over $414,700 $66,543.00 + 32% of the excess over $326,600, Over $414,700 but not over $622,050 $94.735.00 + 35% of the excess over $414,700. Over $622,050 $167,307,50 + 37% of the excess over $622,050. 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. Req incon do no field Begi Minu Print Done Kenneth Tully and Toby Benning began a new consulting (Click the icon to view the 2020 tax ratu su business on January 1, 2020. They organized the business as Married filing jointly filing status.) a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had (Click the icon to view the corporation tax rate operating expenses of $750,000 before any payments to information.) Kenneth or Toby. During 2020, KT paid dividends to Kenneth (Click the icon to view the standard deduction amounts.) and Toby in the Kenneth's wife return, have ite Reference children. (Assu ws Read the regu A corporation's taxable income is subject to a flat tax rate of 21% Requirement income tax. (EN do not selecta fields to the ne tment ield empty h the input Print Done Begin by calcul Minus Kenneth Tully and Toby Benning began a new consulting B Click the icon to view the 2020 tax rate schedule for the busi ac suca Reference opel Ken is.) and Ken Married individuals filing joint returns and surviving spouses $ 24,800 retul Heads of households $ 18,650 child Unmarried individuals (other than surviving spouses and heads of Real households) $ 12,400 Married individuals filing separate returns $ 12,400 Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses $1,300 Red inco Additional standard deduction for the aged and the blind; Individual who is do unmarried and not a surviving spouse $1,650 field Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. Beg Mind Print Done Kenneth Tully and Toby Benning began a new consulting (Click the icon to view the 2020 tax rate schedule for the business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation Married filing jointly filing status.) was successful and generated revenues of $1.5 million. KT (Click the icon to view the corporation tax rate had operating expenses of $750,000 before any payments information.) to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. (Click the icon to view the standard deduction amounts) Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children (Assume the qualified dividends tax rate is 15%.) Read the requirements Requirement a. Compute the total tax liability of KT, Inc. and Kenneth and his wife for 2020. Ignore the net investment income tax. (Enter amounts in dollars and not in millions. 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 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.) Begin by calculating the tax liability for KT, Inc. Minus: (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160.000 from her job, they file a joint retum, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Begin by calculating the tax liability for KT, Inc. Minus Taxable income Corporate tax Compute the tax liability of Kenneth and his wife. (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They Organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife eamed $160,000 from her job, they file a joint retum, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Compute the tax liability of Kenneth and his wife, Adjusted gross income (AGI) Minus: Deductions from AGI: (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children (Assume the qualified dividends tax rate is 15%) Read the requirements Adjusted gross income (AGI) Minus: Deductions from AGI: Taxable income Tax on taxable income without dividends (tax rate schedule) Tax on dividends Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements. (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Tax on dividends Total tax (Individual) Requirement b. Instead of organizing the consulting business as a C corporation, assumo Kenneth akd Toby organized the business as a limited liability company, KT, LLC, KT made a distribution of $195,000 each to Kenneth and Toby during 2020. Compute the total tax liability of KT, LLC and Kenneth for 2020. Ignore any additional tax on net investment income, and ignore the qualified business income deduction (Enter amounts in dollars and not in millions. If an input field is not used in the tablo, leave the input field empty, do not select a label or enter 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.) (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements Begin by calculating the tax liability for KT, LLC. Minus A Taxable income Corporate tax Comite the fav shilin kannath in 2020 Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million. KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%) Read the requirements (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Corporate tax Compute the tax liability of Kenneth for 2020 ho Adjusted gross income (AGI) Minus Dedictions from AGE Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%) Read the requirements (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Adjusted gross income (AGI) Minus: Deductions from AGE: Taxable income Tax on taxable income without dividends (tax rate schedule) Tax on dividends Kenneth Tully and Toby Benning began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had operating expenses of $750,000 before any payments to Kenneth or Toby. During 2020, KT paid dividends to Kenneth and Toby in the amount of $195,000 each. Assume that Kenneth's wife earned $160,000 from her job, they file a joint return, have itemized deductions of $30,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements (Click the icon to view the 2020 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the corporation tax rate information.) (Click the icon to view the standard deduction amounts.) Minus: Doductions from AGI: Taxable income Tax on taxable income without dividends (tax rate schedulo) Tax on dividonds Total tax (Individual) e Kenneth Tully and Toby Benning began a new consulting (Click the icon to view the 2020 tax rate schedule IUI business or a C corporal successful Requirements operating el Kenneth or amounts.) and Toby in Kenneth's W a. Compute the total tax liability of KT, Inc. and Kenneth and his wife for 2020, return, have Ignore the net investment income tax. children. (A b. Instead of organizing the consulting business as a C corporation, assume Read the re ws Kenneth and Toby organized the business as a limited liability company, KT; LLC. KT made a distribution of $195,000 each to Kenneth and Toby during 2020. Compute the total tax liability of KT, LLC and Kenneth for 2020. Ignore any additional tax on net investment income, and ignore the qualified Requiremel business income deduction ent income tax Hempty: do not seled he input fields to the Print Done Begin by ca Minus click the icon to view the 2020 tax rate sch enneth Tully and Toby Benning began a new consulting sif 4 ucd Reference oper Kenil and Kend retur child Read Married, Filing Joint and Surviving Spouse If taxable income is: The tax is: Not over $19,750 10% of taxable income Over $19,750 but not over $80,250 $1,975.00 + 12% of the excess over $19,750, Over $80.250 but not over $171,050 $9,235.00 + 22% of the excess over $80,250 Over $171,050 but not over $326,600 $29,211.00 +24% of the excess over $171,050, Over $326,600 but not over $414,700 $66,543.00 + 32% of the excess over $326,600, Over $414,700 but not over $622,050 $94.735.00 + 35% of the excess over $414,700. Over $622,050 $167,307,50 + 37% of the excess over $622,050. 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. Req incon do no field Begi Minu Print Done Kenneth Tully and Toby Benning began a new consulting (Click the icon to view the 2020 tax ratu su business on January 1, 2020. They organized the business as Married filing jointly filing status.) a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $1.5 million, KT had (Click the icon to view the corporation tax rate operating expenses of $750,000 before any payments to information.) Kenneth or Toby. During 2020, KT paid dividends to Kenneth (Click the icon to view the standard deduction amounts.) and Toby in the Kenneth's wife return, have ite Reference children. (Assu ws Read the regu A corporation's taxable income is subject to a flat tax rate of 21% Requirement income tax. (EN do not selecta fields to the ne tment ield empty h the input Print Done Begin by calcul Minus Kenneth Tully and Toby Benning began a new consulting B Click the icon to view the 2020 tax rate schedule for the busi ac suca Reference opel Ken is.) and Ken Married individuals filing joint returns and surviving spouses $ 24,800 retul Heads of households $ 18,650 child Unmarried individuals (other than surviving spouses and heads of Real households) $ 12,400 Married individuals filing separate returns $ 12,400 Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses $1,300 Red inco Additional standard deduction for the aged and the blind; Individual who is do unmarried and not a surviving spouse $1,650 field Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. Beg Mind Print Done