Ray and Terry own and operate Jeffords Worldwide for the entirety of $2023.$ They both actively participate in the business and it is their primary source of income. During the year Jeffords reports the following activity:

Sales Revenues

Payments to Ray for Services rendered

Payments to Terry for Services rendered

Compensatton for Non$-$Owners

Advertising Expense

Interest from Savings Account

Short term Capital Loss

Cash Distribution to Ray

Cash Distribution to Terry

$100,000$

$(60,000)$

$(50,000)$

$(20,000)$

$(5,000)$

$5,000$

$(10,000)$

$(100,000)$

$(50,000)$

Ray's basis in the entity at the beginning of the year is $$300,000$ and Terry's is $$200,000.$ Assume they both have have owned their interest in the entity for $5$ years, and have sufficient at$-$risk basis to deduct any allowed losses. Further assume the business qualifies for the QBI deduction.

A$)$ What is the total amount of taxes Ray will pay as a result of his ownership if Jeffords Worldwide is organized as an LLC$?$ You can assume all items are allocated based on relative ownership percentages, he has no other income or deductions and uses the single filing status.

B$)$ What is the total amount of taxes Terry will pay as a result of his ownership if Jeffords' Worldwide is organized as an S$-$corp? You can assume all items are allocated based on relative ownership percentages, he has no other income or deductions and uses the single filing status.