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Required information [ The following information applies to the questions displayed below. ] Mackenzie is considering conducting her business, Mac 5 6 1 , as
Required information
The following information applies to the questions displayed below.
Mackenzie is considering conducting her business, Mac as either a singlemember LLC or an S corporation. Assume her marginal ordinary income tax rate is percent, her marginal FICA rate on employee compensation is percent, her marginal selfemployment tax rate is percent her other selfemployment income andor salary exceeds the wage base limit for the percent Social Security tax portion of the selfemployment tax and any employee compensation or selfemployment income she receives is subject to the percent additional Medicare tax. Also, assume Mac generated $ of business income before considering the deduction for compensation Mac pays to Mackenzie and Mackenzie can claim the full qualified business income deduction on Macs business income allocated to her. Determine Mackenzie's aftertax cash flow from the entity's business income and any compensation she receives from the business under the following assumptions:
Note: Round intermediate calculations and your final answers to the nearest whole dollar.
a Mackenzie conducted Mac as
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