# 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