Dave and his friend Stewart each own 50 percent of KBS. During
the year, Dave receives $93,000 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
$37,200.
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)?
(Do not round any percentage calculations. Round other
intermediate calculations and final answers to the nearest whole
dollar amount.)
Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives...
On January 1, year 1, Dave received 2,200 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $18 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
On January 1, year 1, Dave received 900 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $11 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
On January 1, year 1, Dave received 2,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $21 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $7 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $7 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
[Q14+15] On January 1, year 1, Dave received 2,500 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $13 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share...
On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $7 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital’s balance sheet on the day Dave received his capital interest appears below: Basis Fair Market Value Assets: Cash $ 210,000 $ 210,000 Investments 100,000 126,000 Land 290,000 420,000 Totals $ 600,000 $ 756,000 Liabilities and capital:...
Lenny Florita, an unmarried employee, works 50 hours in the week ended January 12. His pay rate is $12 per hour, and his wages have deductions for FICA Social Security, FICA Medicare, and federal income taxes. He claims four withholding allowances. Compute his regular pay, overtime pay (Lenny earns $18 per hour for each hour over 40 per week), and gross pay. Then compute his FICA tax deduction (6.2% for the Social Security portion and 1,45% for the Medicare portion),...
Eric's gross pay for the week is $2,150. His deduction for federal income tax is based on a rate of 25%. He has no voluntary deductions. His yearly pay is under the limit for OASDI. What is the amount of FICA tax that will be withheld from Eric's pay? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) $537.50 $701.98 $136.50 $164.48