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Problem 15-49(LO 15-3)(Static)
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Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $100,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax (Jacob has salary in excess of the wage base limitation) and 0.9 percent additional Medicare tax.
Note: Round your intermediate calculations to the nearest whole dollar amount.
Problem 15-49 Part a (Static)
a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income?

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