Amit is a partner in reynolds partnership. this year, amit's schedule k-1 from reynolds reflected $50,000 of ordinary income, $1,000 of interest income, and a cash distribution of $35,000. amit's marginal tax rate is 39.6%.(a) calculate the tax cost of amit's partnership earning this year. (b) calculate amit's after-tax cash flow from his partnership activity this year.

a) $20,196

b) $14,804

Explanation:

As for the provided information, we have

a) Tax Calculation will be:

Ordinary Income = $50,000

Add: Interest = $1,000

Cash Distribution = Non taxable

Total taxable income = $51,000

Marginal tax rate = 39.6%

Tax amount = $51,000 39.6% = $20,196

b) Amit's After tax cash flow from partnership this year shall be:

Total cash received from partnership = $35,000

Less: Tax paid on such amount = $20,196 = $14,804

Net cash after tax from partnership = $14,804

Final Answer

a) $20,196

b) $14,804

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent