Bonnie is married and has 1 child. She owns Bonnie’s Rib Joint, which produces a tax- Communication.

Bonnie is married and has 1 child. She owns Bonnie’s Rib
Joint, which produces a tax- Communication Skills able income of approximately
$100,000 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 $100,000
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 advise 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
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Bonnie is married and has 1 child. She owns Bonnie’s Rib
Joint, which produces a tax- Communication Skills able income of approximately
$100,000 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 $100,000
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 advise 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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