Kyrsten Haas Expects Her S Corporation to Generate a Profit

question 61

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)

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