Final answer:
Kirsten's taxable income is estimated to be $148,920, which is calculated by subtracting the standard deduction and the qualified business income deduction from her net income. The after-tax income would depend on the tax rate, but using an assumed marginal tax rate of 33%, her estimated after-tax income is $99,796.
Step-by-step explanation:
To calculate Kirsten’s taxable income, we begin with the net income from Purple Company, which is $200,000. Since Kirsten is the sole owner and this is her only source of income, we first subtract the standard deduction of $13,850, leaving $186,150. Next, we subtract the deduction for qualified business income, which is $37,230. This results in a taxable income of $148,920 ($200,000 - $13,850 - $37,230).
As for after-tax income, we cannot calculate the exact amount without knowing the relevant tax rates and potential tax credits or additional taxes. However, a rough calculation can be made by making assumptions based on the provided text. If we assumed a similar tax rate to the high-income individual mentioned earlier, who has a marginal tax rate of 33%, Kirsten's tax payment would be 33% of her taxable income. This would result in a tax payment of approximately $49,124 (33% of $148,920). Therefore, her after-tax income can be estimated as her taxable income minus the tax payment: $148,920 - $49,124 = $99,796. However, in the absence of the precise tax schedule applicable for Kirsten, the exact after-tax income can vary.