How much FICA and-or self-employment tax is Dave required

Assignment Help Accounting Basics
Reference no: EM133036606

Question - Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $83,000 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 $33,200. 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)?

Reference no: EM133036606

Questions Cloud

What is the depreciation expense for vehicle : Problem: Red Company purchased the vehicle which costs 835,000 THB. The Salvage value at the end of useful life is estimated as 5,600 THB. Also, the vehicle was
Construct an outline on unemployment rise : Construct an Outline on Unemployment Rise - construct an outline, you must group your notes together and match information
Which hotel was doing bad on covid in australia : Which Hotel was doing bad on COVID in Australia? Please identify the 'value' gaps and issues in the industry.
Determine the z score corresponding to a bsta : The average height of BSTA 305 female students follows the normal distribution with a mean of 165 cm and a standard deviation of 5 cm. Determine the z score cor
How much FICA and-or self-employment tax is Dave required : After deducting Dave's compensation, KBS reports taxable income of $33,200. How much FICA and/or self-employment tax is Dave required
What is value proposition : How would you differentiate value proposition and unique selling proposition? What is Value Proposition?
Entrepreneurial leader and management team : How do concepts such as process, power distances, strategic planning, risk, vision, SMART goals, and the other essential leadership and management ideas demonst
Explain anticipated impacts on health care organizations : Research one recent health care event that occurred withinthe last three months (e.g., a new policy from Centers for Medicare and Medicaid Services
Evaluate the internationalization strategy : Question 1: Evaluate the internationalization strategy developed by Danone, notably the selection of foreign markets.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd