McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 57

{Research} Dave and his friend Stewart each own 50 percent of KBS.During the year, Dave receives $75,000 compensation for services he performs for KBS during the year.He performed a significant amount of work for the entity and he was heavily involved in management decisions for the entity (he was not a passive investor in KBS).After deducting Dave's compensation, KBS reports taxable income of $30,000.How much FICA and/or self-employment tax is Dave required to pay on his compensation and his share of the KBS income if KBS is formed as a C corporation, S corporation, or a limited liability company?