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Ms. Kona owns a 11 percent interest in Carlton LLC. This year, the LLC generated $85,600 ordinary income. Ms. Kona's marginal tax rate is

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Ms. Kona owns a 11 percent interest in Carlton LLC. This year, the LLC generated $85,600 ordinary income. Ms. Kona's marginal tax rate is 32 percent, and she does not pay SE tax on her LLC income. Required: a. Compute the tax cost on Ms. Kona's share of Carlton's income assuming that she received a $45,000 cash distribution this year. b. Compute the tax cost on Ms. Kona's share of Carlton's income assuming that she received no cash distribution this year. Note: For all requirements, round your final answers to the nearest whole dollar amount. Amount a. Tax cost $ 23,816x b. Tax cost $ 9,416x

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