Jacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated...

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Accounting

Jacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated $100,000 of business income from WCC for the year.Jacob's marginal income tax rate is 37%. The business allocation issubject to 2.9% of self-employment tax and 0.9% additional Medicaretax.
A) What is the amount of tax Jacob will owe on the incomeallocation if the income is not qualified business income?
B) What is the amount of tax Jacob will owe on the incomeallocation if the income is qualified business income (QBI) andJacob qualifies for the full QBI duduction?

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A 40014 Computation Amount Description 1 Business income allocation 100000 2 QBI deduction 0 income does not qualify 3 Deduction for 50 percent of SE tax 1339 1 09235 See Answer

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In: AccountingJacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated $100,000...Jacob is a member of WCC (an LLC taxed as a partnership). Jacobwas allocated $100,000 of business income from WCC for the year.Jacob's marginal income tax rate is 37%. The business allocation issubject to 2.9% of self-employment tax and 0.9% additional Medicaretax.A) What is the amount of tax Jacob will owe on the incomeallocation if the income is not qualified business income?B) What is the amount of tax Jacob will owe on the incomeallocation if the income is qualified business income (QBI) andJacob qualifies for the full QBI duduction?