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  3. 2a. mr. and mrs. orange and their two children, cl

2A. Mr. and Mrs. Orange and their two children, Clementine and Tangerine, are the four...

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Accounting

2A. Mr. and Mrs. Orange and their two children, Clementine and Tangerine, are the four equal partners in Citrus Partnership. This year, Citrus Partnership generated $80,000 of ordinary income. Compute the tax cost associated with this income if Mr. and Mrs. Orange's marginal tax rate is 35%, Clementine's marginal tax rate is 24%, and Tangerine's marginal tax rate is 32%.

2B.

Orange, an individual, expects his U.S. based C corporation to generate a profit of $100,000. What is Orange's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend? Assume Orange's marginal tax rate on ordinary income is 37%, Orange qualified dividend rate is 20%, and the corporate tax rate is 21%.

2C. Banana, an individual, expects her S corporation to generate ordinary profit of $1,800,000. Banana's marginal tax rate on ordinary income is 37%. What is Banana's after-tax cash outflow from the S corporation if no cash is distributed?

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