Question 1 (18 points) Nikki is a 40 percent owner in a business that is organized as an LLC and reports as a partnership. The partnership has net business income $100,000

before Nikki's salary of $30,000. Nikki's total taxable income from all sources is substantailly higher than the income from the LLC. The partnership paid total W-2 wages of $500,000 to non-owners and the total unadjusted basis of property held by the LLC is $800,000 Nikki's combined federal and state marginal tax bracket is 40 percent. Estimate Nikki's after tax cash flow from this LLC. You may assume that Nikki's share of partnership income is distributed. Show your calculations. a. b. How would your answer differ if the company was operated as an S Corporation? Show your calculations.