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Kyrsten Haas Expects Her S Corporation to Generate a Profit

Question 58

Multiple Choice

Kyrsten Haas expects her S corporation to generate a profit of $200,000. Kyrsten's marginal tax rate on ordinary income is 37%. What is Kyrsten's after-tax cash flow from the S corporation if no cash is distributed?


A) $0
B) ($74,000)
C) $126,000
D) ($126,000)

Correct Answer:

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