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Required information Problem 15-51 (LO 15-3) [The following information applies to the questions displayed below.] Mackenzie is considering conducting her business, Mac561, as either

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Required information Problem 15-51 (LO 15-3) [The following information applies to the questions displayed below.] Mackenzie is considering conducting her business, Mac561, as either a single-member LLC or as 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 full qualified business income deduction on Mac561's business income. Determine Mackenzie's after-tax cash flow from the entity's business income and any compensation she receives from the business under the following assumptions: (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Problem 15-51 Part a a. Mackenzie conducted Mac561 as a single-member LLC. After-tax cash flow Problem 15-51 Part b b. Mackenzie conducted Mac561 as an S corporation and she received a salary of $100,000. All business income allocated to her is also distributed to her. After-tax cash flow Problem 15-51 Part c c. Mackenzie conducted Mac561 as an S corporation and she received a salary of $20,000. All business income allocated to her is also distributed to her. After-tax cash flow Problem 15-51 Part d d-1. Which entity/compensation combination generated the most after-cash flow for Mackenzie? Single member LLC

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