Mackenzie is considering conducting her business, Mac561, as either a single-member LLC or 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 assumeMac561 generated $200,000 of business income before considering the deduction for compensation Mac561 pays to Mackenzie and Mackenzie can claim the qualified business income deduction on Mac561's business income. Determine Mackenzie's after-tax cash flow from the entity's business income and any compensation she receives from the business under the following assumptions:(Round intermediate calculations and your final answers to the nearest whole dollar.)

d-1.Which entity/compensation combination generated the most after-tax cash flow for Mackenzie?

d-2.What are the primary contributing factors favoring this combination?(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• a small amount of payroll tax on the low salary
• a relatively large QBI deduction because of the low salary
• a relatively small QBI deduction because of the low salary
• a huge amount of payroll tax on the low salary
• none of the relatively large business income allocation was subject to FICA or self-employment tax.