Required information (The following information applies to the questions displayed below.) Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $191,000 salary working full time for Angels Corp. Angels Corp. reported $444,000 of taxable business income for the year (2020). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $191,000 (all salary from Angels Corp.). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) c. What is Mason's self-employment tax liability? Mason's self-employment tax liability d. What is Mason's additional Medicare tax liability? Mason's additional Medicare tax liability

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
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Finance
Required information
[The following information applies to the questions displayed below.)
Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $191,000 salary working
full time for Angels Corp. Angels Corp. reported $444,000 of taxable business income for the year (2020). Before
considering his business income allocation from Angels and the self-employment tax deduction (if any). Mason's adjusted
gross income is $191,000 (all salary from Angels Corp.). Answer the following questions for Mason. (Leave no answer
blank. Enter zero if applicable.)
c. What is Mason's self-employment tax liability?
Mason's self-employment tax liability
d. What is Mason's additional Medicare tax liability?
Mason's additional Medicare tax liability
Transcribed Image Text:Finance Required information [The following information applies to the questions displayed below.) Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $191,000 salary working full time for Angels Corp. Angels Corp. reported $444,000 of taxable business income for the year (2020). Before considering his business income allocation from Angels and the self-employment tax deduction (if any). Mason's adjusted gross income is $191,000 (all salary from Angels Corp.). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) c. What is Mason's self-employment tax liability? Mason's self-employment tax liability d. What is Mason's additional Medicare tax liability? Mason's additional Medicare tax liability
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