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ira [324]
3 years ago
10

Meredith is a passive 30% member of the MNO LLC. She is not a managing member and she does not participate in any activities of

the LLC. Her interest is more in the nature of an investment. In the current year, Meredith's distributive share of income from the LLC was $50,000. In addition, she received a guaranteed payment of $40,000 for the use of her capital. Assume that her income from other sources exceeds $500,000. How much of Meredith's LLC income will be subject to the self-employment (SE) tax (under the Proposed Regulations) and the net investment income (NII) tax? (Disregard the additional Medicare tax on upper-income taxpayers.)a.$90,000 SE tax; $0 NII tax.b.$0 SE tax; $90,000 NII tax.c.$50,000 SE tax; $40,000 NII tax.d.$0 SE tax; $0 NII tax.e.$0 SE tax; $40,000 NII tax.

Business
1 answer:
goldfiish [28.3K]3 years ago
7 0

Answer

b.$0 SE tax; $90,000 NII tax.

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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At many amusement parks, customers who enter the park after 4 p.m. receive a steep discount on the price they pay. This is a typ
Roman55 [17]

Answer:

The answer is b) people who have a more inelastic demand for amusement parks.

Explanation:

For this price discrimination strategy, amusement parks are aiming at people who are more willing to come to the amusement park to spend more hours at the park and does not care about entry price as much as other people who are not normally willing to visit the park; instead, may be take a try for one or two hours at the end of the day at deep discounted price.

So, high price will be charged to people less care about entry price, in other works their demand for the amusement parks is relatively more inelastic to other people.

Thus, b is the right choice.

8 0
3 years ago
Suppose that when disposable income decreases by $2,000, consumption spending increases by $1500. Given this information, we kno
sdas [7]

Answer:

the marginal propensity to consume is 0.75

Explanation:

The computation of the marginal propensity to consume is shown below:

MPC = Change in consumption ÷Change in disposable income

where,

The Change  in consumption is 1500

ANd, the Change in disposable income is 2000

So,

MPC is

= $1,500 ÷ $2,000

= 0.75

hence, the marginal propensity to consume is 0.75

4 0
3 years ago
On May 1, 20X2, Bolt Corp. issued 11% bonds in the face amount of $1,000,000 that mature on May 1, 20X12. The bonds were issued
TiliK225 [7]

Answer:

B) 60,100

Explanation:

Since months have passed between the bond issuance and October 31. The amortization of the premium received depends on the amount of interest recognized. When the effective interest method is used, interest expense is based on the yield rate and the beginning book value.

interest expense = ($1,000,000 + $62,000) x 10% x 6/12 = $53,100

interest payable = $1,000,000 x 11% x 6/12 = $55,000

the difference (bond premium) = $55,000 - $53,100 = $1,900

unamortized bond premium = $62,000 - $1,900 = $60,100

4 0
3 years ago
Eric enjoys making pizza. When he makes pizza for his friends, sometimes Eric cares about how the pieces are distributed, and so
sammy [17]

Answer:

equity:

-He cuts the pie into eight equal slices.

-He cuts the pie into many slices so that everyone gets a piece.

Efficiency:

-He lets one person eat the whole pie.

-He makes sure that the whole pie is eaten.

Explanation:

Equity deals with distribution i.e to ensure things are equally distributed

While

Efficiency is trying to make sure things are completely used up i.e act of preventing waste

3 0
3 years ago
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $77,980. The company estimated that the machine has a s
Marysya12 [62]

Answer:

Depreciation for

2017 = $2,540

2018 = $10,160

Explanation:

Provided, Total cost of the machine = $77,980

Estimated salvage value = $6,860

Therefore, value to be depreciated = $77,980 - $6,860 = $71,120

Total life of asset = 7 years

Depreciation for the year 2017 = October to December = 3 months

\frac{71,120}{7} \times \frac{3}{12} = $2,540

Depreciation for the year 2018 = \frac{71,120}{7} = $10,160

Under straight line method depreciation is fixed for each year, but in the given case in 2017 the asset is used only for 3 months, thus depreciation will be charged for 3 months only.

Final Answer

Depreciation for

2017 = $2,540

2018 = $10,160

7 0
3 years ago
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