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Jennifer Jones is a 60-percent owner of JJ LLC (taxed as a partnership). She is...

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Accounting

Jennifer Jones is a 60-percent owner of JJ LLC (taxed as a partnership). She is a passive investor in JJ (she doesn't perform any work for JJ). Which of the following statements is true regarding Jennifer's tax treatment of business income allocated to her from JJ?
A) Business income allocations are not subject to self-employment tax.
B) Business income allocations are not subject to the net investment income tax.
C) Business income allocations are subject to the additional Medicare tax.
D) Business income allocations are taxed at a maximum 23.8 percent tax rate.
E) None of these are true.

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