Bonnie is married and has 1 child. She owns Bonnie’s Rib Joint, which produces a taxable income of approximately $120,000 per year.

profileadelen
 (Not rated)
 (Not rated)
Chat

 

Bonnie is married and has 1 child. She owns Bonnie’s Rib Joint, which produces a
taxable income of approximately $120,000 per year.
a. Assume that Bonnie’s taxable income is $40,000 without considering the
income from the rib joint. How much tax will she pay on the $120,000 of
income from the rib joint?
b. You work for the firm that prepares Bonnie’s tax return. Bonnie has asked the
partner for whom you work to advise her on how she might lower her taxes.
The partner has assigned you this task. Draft a memorandum to the partner
that contains at least two options Bonnie could use to lower her taxes. For
each option, explain the calculations that support the tax savings from your
recommendation.
    • 6 years ago
    the answer
    NOT RATED

    Purchase the answer to view it

    • attachment
      answer.docx