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Lelechka [254]
4 years ago
6

Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income from his single member LLC

(a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm has no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $381,400 (this is also their taxable income before the deduction for q
Business
1 answer:
Ede4ka [16]4 years ago
4 0

Answer:

Explanation:

Ben and Molly are married and file tax returns jointly. Ben has a single member LLC that generates $300,000 business income and the firm pays wages of $40,000 using the base of $10,000. Because the business income generated is not clearly specified, a tentative QBI on the wages will be applied as W-2. Under such a case, the approved wages limit is 25% of the paid wages by the business plus a 2.5% of the adjusted basis property

The tentative QBI in Ben and Molly's case will be (25%*$40,000) + (2.5%*$10,000) = $10,250

Since the adjusted taxable income for the couple is $381,400, the tentative QBI deduction will be applied to reduce the taxable amount to $371,150.

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PA12.
Elan Coil [88]

Answer:

\left[\begin{array}{cccc}$unit sale&100000&90000&80000\\$sales revenue&3500000&3150000&2800000\\$COGS&&&\\$Material&900000&810000&720000\\$Labor&1000000&900000&800000\\$VMO&250000&225000&200000\\$FMO&80000&80000&80000\\$total&2230000&2015000&1800000\\$gross profit&1270000&1135000&1000000\\$V S and A&100000&90000&80000\\$F S and A&950000&950000&950000\\$operating income&220000&95000&-30000\\$tax expense&66000&28500&\\$net income&154000&66500&-30000\\\end{array}\right]

Explanation:

<em></em>

<em>We will cross-multiply the variables concept like sales revenues materials, labor and other</em>

I.G

<em>sales revenues for 90,000:</em>

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<em>for 80,000:</em>

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<em></em>

The fixed will remain at the same value between the relevant range so we do not change them.

For the tax expense  we will have to check which is the rate

for 220,000 operating income the tax expense is 66,000

we can solve for rate: 66,000/220,000 = 0.3 = <em>30%</em>

Now we will determinate the tax expense with that rate.

<em>NOTE</em> attached missing information

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Answer:

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Answer:

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