Question
Problem 15-55 (LO 15-3) (Static) [The following information applies to the questions displayed below.] Mackenzie is considering conducting her business, Mac561, as either a single-member
Problem 15-55 (LO 15-3) (Static) [The following information applies to the questions displayed below.] 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 assume Mac561 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 Mac561s business income. Determine Mackenzies after-tax cash flow from the entitys 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.)
Problem 15-55 Part a (Static)
a. Mackenzie conducted Mac561 as a single-member LLC.
After-tax cash flow______
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