Solutions to Chapter 4 Problems

The S corporation deducts FICA taxes paid of $2,678 ($35,000 x 7.65%) and FUTA taxes of $434 ($7,000 x 6.2%). The total amount of income that will pass through to Evan’s on the K-1 will be $63,888 ($130,000 - $25,000 - $35,000 - $2,678 - $434 - $3,000) plus $3,000 for health insurance. ................
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