Answer:
$6,840
Explanation:
Given that:
Mason receives a salary amount of $180,000
Taxable business income = $400,000 × 50%
Adjusted Gross Income = $180,000 + $200000
Adjusted Gross Income = $380000
The net investment income tax liability is:
= (380000 -200000) × 3.8%
= 180000 × 3.8%
= $6,840