Problem 15-45 (LO 15-3)

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Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $135,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.)

rev: 11_08_2019_CS-189656

Problem 15-45 Part b

b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction?