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Jonathan owns 100% of Lemon Company. In the current year, Lemon recognizes a long-term capital gain of $70,000 and no other income (or loss). Jonathan is in the 33% tax bracket and has no recognized capital gains (or losses) before considering his ownership interest in Lemon Company

a. If Lemon is an LLC, what is the tax on the $70,000 long-term capital gain? (No election has been filed under the check-the-box Regulations.)
$

b. If Lemon is a C corporation, what is the tax on the $70,000 long-term capital gain?
$

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9962746

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