Jana is a shareholder in Jasmine Company, a partnership. Her share of the business's current ordinary business income was $250,000. She received no guaranteed payments and a $100,000 cash distribution from the business on December 1. Assuming that Alice's marginal tax rate is 37%, calculate her after-tax cash flow from the business this year. Ignore self-employment taxes and assume she is not eligible for the Section 199A deduction. a. 92,500 b. 100,000 c. 7,500 d. 63,000
Jana is a shareholder in Jasmine Company, a partnership. Her share of the business's current ordinary business income was $250,000. She received no guaranteed payments and a $100,000 cash distribution from the business on December 1. Assuming that Alice's marginal tax rate is 37%, calculate her after-tax cash flow from the business this year. Ignore self-employment taxes and assume she is not eligible for the Section 199A deduction. a. 92,500 b. 100,000 c. 7,500 d. 63,000
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 14CE
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Jana is a shareholder in Jasmine Company, a
a.
92,500
b.
100,000
c.
7,500
d.
63,000
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT