Gwen and Travis Organized a New Business as an LLC

question 78

Multiple Choice

Gwen and Travis organized a new business as an LLC in which they own equal interests.The new business generated a $10,000 operating loss its first year.If Gwen's marginal tax rate is 35%,her tax savings from the first-year LLC loss is:

• A)$3,500
• B)$1,750
• C)$5,000
• D)$3,250

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