Keith Thomas and Trent Brooks began a new consulting business on January 1, 2020. They...
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Keith Thomas and Trent Brooks began a new consulting business on January 1, 2020. They organized the business as a C corporation, KT, Inc. During 2020, the corporation was successful and generated revenues of $2 million. KT had operating expenses of $800,000 before any payments to Keith or Trent. During 2020, KT paid dividends to Keith and Trent in the amount of $350,000 each. Assume that Keith's wife earned $130,000 from her job, they file a joint return, have itemized deductions of $40,000, and have no children. (Assume the qualified dividends tax rate is 15%.) Read the requirements. (Click the icon to view the 2020 filing status.) (Click the icon to view the corpor (Click the icon to view the standa ..... net investment income, and ignore the qualified business income deduction. (Enter amounts in dollars and not in millions. If an the input field empty; do not select a label or enter a zero. Do not round intermediary calculations. Only round the amounts you cent. Use the tax rate schedule for necessary tax calculations. Enter a "0" for items with a zero balance.) Begin by calculating the tax liability for KT, LLC. a Gross income Minus: Operating expenses Taxable income Corporate tax
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