Jenkle Legal Services – Calculate after-tax cash flow
In his first year as a partner with Jenkle Legal Services, Mr. Fallon received a $2,000 monthly guaranteed payment. His share of Jenkle’s ordinary business income was $55,000. If his combined income and SE tax rate on his earned income is 30 percent, compute his after-tax cash flow from Jenkle assuming the following:
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WRITE MY ESSAYa. In addition to his guaranteed payments, Mr. Fallon received a $10,000 cash distribution
from Jenkle.
b. In addition to his guaranteed payments, he received a $50,000 cash distribution
from Jenkle.
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