Jorge recently learned that his son was going to need some supplemental instruction to help him be successful at school; however, the extra assistance would cost a lot of money and Jorge had not prepared for the expense. With two months to go before the extra bills would start coming in, Jorge started working 4 extra hours per week and saving the additional money to pay for the tutors. When the time came for the extra instruction to begin, Jorge had saved more than enough to pay for the help for his son. Jorge has used coping to deal with the unexpected stress of new expenses.

Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?