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Please respond only if you know the correct answer. Explanation of the solution would be appreciated. Thank you for your help. Dave and his friend
Please respond only if you know the correct answer. Explanation of the solution would be appreciated. Thank you for your help.
Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives $99,000 compensation for services he performs for KBS during the year. He performed a significant amount of work for the entity and he was heavily involved in management decisions (he was not a passive investor in KBS) After deducting Dave's compensation, KBS reports taxable income of $33,000 How much FICA and/or self-employment tax is Dave required to pay on his Compensation and his share of the KBS income if KBS is formed as a C Corporation, S Corporation, or a limited liability company (ignore the .9 percent additional Medicare tax)? (Do not round any percentage calculations. Round other intermediate calculations and final answers to the nearest whole dollar amount.) C corporation S corporation Limited liability companyStep by Step Solution
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