b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QB) and Jacob qualifies for the full QBI deduction?
b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QB) and Jacob qualifies for the full QBI deduction?
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 62P
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![Required information
Problem 15-49 (LO 15-3) (Algo)
[The following information applies to the questions displayed below]
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $70,000 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 and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the
nearest whole dollar amount.)
Problem 15-49 Part b (Algo)
b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and
Jacob qualifies for the full QBI deduction?
Answer is complete but not entirely correct.
Tax owed if income is QBI
13,813](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8809aa0b-e1b4-4563-9951-8d9ab7423f1e%2F77f37078-e072-4260-82e4-ecd5880db353%2Fvr89en8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 15-49 (LO 15-3) (Algo)
[The following information applies to the questions displayed below]
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $70,000 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 and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the
nearest whole dollar amount.)
Problem 15-49 Part b (Algo)
b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and
Jacob qualifies for the full QBI deduction?
Answer is complete but not entirely correct.
Tax owed if income is QBI
13,813
![!
Required information
Problem 15-49 (LO 15-3) (Algo)
[The following information applies to the questions displayed below]
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $70,000 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 and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the
nearest whole dollar amount.)
Problem 15-49 Part a (Algo)
a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income?
Answer is complete but not entirely correct.
Tax owed if income is not QBI
24,889](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8809aa0b-e1b4-4563-9951-8d9ab7423f1e%2F77f37078-e072-4260-82e4-ecd5880db353%2Fki28poy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 15-49 (LO 15-3) (Algo)
[The following information applies to the questions displayed below]
Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $70,000 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 and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the
nearest whole dollar amount.)
Problem 15-49 Part a (Algo)
a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income?
Answer is complete but not entirely correct.
Tax owed if income is not QBI
24,889
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