Question
This year, Justin B.s share of S corporation income includes $5,000 of interest income, $6,500 of dividend income, and $45,000 of net income from the
This year, Justin B.s share of S corporation income includes $5,000 of interest income, $6,500 of dividend income, and $45,000 of net income from the corporations professional service business activity.
a. Assume that Justin B. materially participates in the S corporation. How much of his S corporation income is potentially subject to the net investment income tax?
b. Assume that Justin B. does not materially participate in the S corporation. How much of his S corporation income is potentially subject to the net investment income tax?
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Study Guide For Use With Managerial Accounting
Authors: Ronald M. Copeland, Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser
1st Edition
0873937651, 978-0873937658
