Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives $81,000 compensation for services he performs for KBS during the year. He performed a significant amount of work for the entity and he was heavily involved in management decisions for the entity (he was not a passive investor in KBS). After deducting Dave's compensation, KBS reports taxable income of $32,400. How much FICA and/or self-employment tax is Dave required to pay on his compensation and his share of the KBS income if KBS is formed as a C corporation, an S corporation, or a limited liability company (ignore the 0.9 percent additional Medicare tax)? (Do not round any percentage calculations. Round other intermediate calculations and final answers to the nearest whole dollar amount.) C corporation S corporation Limited liability company Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives $81,000 compensation for services he performs for KBS during the year. He performed a significant amount of work for the entity and he was heavily involved in management decisions for the entity (he was not a passive investor in KBS). After deducting Dave's compensation, KBS reports taxable income of $32,400. How much FICA and/or self-employment tax is Dave required to pay on his compensation and his share of the KBS income if KBS is formed as a C corporation, an S corporation, or a limited liability company (ignore the 0.9 percent additional Medicare tax)? (Do not round any percentage calculations. Round other intermediate calculations and final answers to the nearest whole dollar amount.) C corporation S corporation Limited liability company
Expert Answer:
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Posted Date:
Students also viewed these accounting questions
-
Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives $75,000 compensation for services he performs for KBS during the year. He performed a significant amount of work...
-
Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guildas basis in her stock is $25,000. On July 31, 2014, Bill sells his stock, with a basis of $40,000, to...
-
Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda's basis in her stock is $25,000. On July 31, 2013, Bill sells his stock, with a basis of $40,000, to...
-
Explain the benefits of graphs over tables in presenting data.
-
Give the product expected when methyl methacrylate (methyl 2-methylpropenoate) reacts with each of the following reagents. (a) C2H5SH and NaOMe catalyst in MeOH (b) NaOH
-
Three physics majors stand with their backs against a wall. They are all in good physical shape. Their task is to lean over and touch their toes without toppling over. Rank their chances for success...
-
Create Your Own: Bubble Plot Using any of the datasets that come with this text that include at least three quantitative variables (or any other dataset that you find interesting and that meets this...
-
United Furniture buys reclining rocking chairs at $550 less 40% and 10%. The price is marked up to allow for overhead of 50% of cost and profit of 35% of cost. The unit on display in the store...
-
Consider the following: Net Income Depreciation Expense Gain on Sale of Land Increase in Inventory Increase in Wages Payable Payment of Dividends $51,900 36,000 22,500 6,150 18,450 6,000 Calculate...
-
Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is...
-
In the opening paragraph of their paper, Sam and Berry ask the question, "What happens to people when they move from the culture in which they have been born and raised to a new and unfamiliar...
-
Karla's car is stuck in the mud. Fan and Warren come along in a truck to help pull her out. They attach one end of a tow strap to the front of the car and the other end to the truck's trailer hitch,...
-
Consider 3 point charges q -2 nC, 92= 7 nC, q3= -8 nC arranged in an upside down L shape, of width w = 20 cm, and height h = 40 cm. 9 92 093 Determine the net electrostatic force acting on q, due to...
-
Q3: A mass is oscillated on a spring with the function as x= 6 sin 5T t where x is in metre and t is in seconds. i. Sketch the graph of displacement against time. ii. Write the expression for the...
-
A particle with a mass M = 68.4 MeV/c at rest decays into two particles. The first with mass m = 7.2 MeV/c and the second one is massless (i.e. a photon). It is given that the life-time of the...
-
A desert tortoise moves at 0.134m/s How long will ti take the mortise to cross a 10m highway? The desert tories is still moving at 0.134 m/s. How far will the tortoise travel in 15s
-
K Find all rational zeros of the following polynomial function. P(x)=x3+ 7 11 3 3x-5 7 11 The rational zeros of the polynomial P(x)=x + -x-5 are 3 3 (Type an integer or a fraction. Use a comma to...
-
Modify the counter from Exercise 5.44 such that the counter will either increment by 4 or load a new 32-bit value, D, on each clock edge, depending on a control signal Load. When Load = 1, the...
-
Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Rebecca is a homemaker and Walt is a high school teacher. Rebeccas Social...
-
Indicate whether the following statements are true or false: ________ A field audit by the IRS is an audit conducted at the IRS field office. ________ A low Discriminant Function System score for a...
-
Which of the following amounts paid by an employer to an employee is not subject to withholding? a. Salary b. Bonus c. Commissions d. Reimbursement of expenses under an accountable plan e. All of the...
-
Using what you learned in this chapter of Dessler Human Resource Management, build on the companys new system by recommending two more specific career development activities the hotel should...
-
Many hotel jobs are inherently dead end; for example, maids, laundry workers, and valets, either have no great aspirations to move up, or are just using these jobs temporarily, for instance, to help...
-
Should other employees (cleaner/spotters, counter people) be put on a similar plan? Why or why not? If so, how exactly?
Study smarter with the SolutionInn App