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Question: Bonnie is married and has 1 child. She owns Bonnie's Rib Joint, which produces a taxable income of approximately $120,000 per year.

A) Assume that Bonnie's taxable income is $40,000 without considering the income from the rib joint. How much tax will she pay on the $120,000 of income from the rib joint?

B) You work for the firm that prepares Bonnie's tax return. Bonnie has asked the partner for whom you work to adviser her on how she might lower her taxes. The partner has assigned you this task. Draft a memorandum to the partner that contains at least two options Bonnie could use to lower her taxes. For each option, explain the calculations that support the tax savings from your recommendation.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92785896

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