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Ms. Kona owns a 9 percent interest in Carlton LLC. This year, the LLC generated $77,200 ordinary income. Ms. Kona's marginal tax rate is 32
Ms. Kona owns a 9 percent interest in Carlton LLC. This year, the LLC generated $77,200 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 $38,000 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. (For all requirements, round your final answers to the nearest whole dollar amount.) Amount a. Tax cost b. Tax cost
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