Question: ABC Tech LLC is a partnership with two equal partners. The company has a qualified net income of $200,000. If both partners qualify and make

ABC Tech LLC is a partnership with two equal partners. The company has a qualified net income of $200,000. If both partners qualify and make the Pass-Through Entity (PTE) election, the partnership can pay a PTE elective tax of to the California Franchise Tax Board. Each partner will report $90,700 of net income (($200,000 - $18,600) X 50%) on their federal K-1. When the partners file their personal returns, their California returns will report $100,000 of net income from ABC Tech LLC and a tax credit of what amount against their individual California income tax? A. $0 B. $5,000 C. $9,300 D. $10,000

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