Please help me with my accounting homework. Thank you.
Amit is a partner in Reynolds Partnership . This year , Amit’s Schedule K – 1 from Reynolds reflected $50, 000 of ordinary income , $1,000 ofinterest income , and a cash distribution of $35 , 000 . Amit’s marginal tax rate is 37 percent . Amit qualifies for the Section 1994deduction , without regard to the wage limitation .a. Calculate the tax cost of Amit’s partnership earnings this year .Tax cost518, 870b . Calculate Amit’s after- tax cash flow from his partnership activity this year .After – tax. cash flow16, 130