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Natasha_Volkova [10]
3 years ago
15

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current

year, ABC has net income of $303,500 after deducting Robert's $91,050 salary. In addition to his compensation, ABC pays Robert dividends of $212,450. a. What is Robert's qualified business income? $303,500 (This answer is correct) b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050? $________
Business
1 answer:
nasty-shy [4]3 years ago
8 0

Answer: $303,500

No

Explanation: Qualified business income QBI allows sole shareholders of eligible businesses (S corporations, sole proprietorship) such as Robert to lessen their tax burden by up to 20 percent. In this case, 20% of $303,500 can be deducted.

QBI will not change as reasonable compensation is not actual compensation, so this does not apply to QBI.

However, If his salary increases to $181,050, this would make Robert ineligible to qualify for the deduction as his income is more than the $157,500 threshold that makes a single taxpayer eligible for QBI.

This amount is $315,000 for a married couple filing a joint return.

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Jmes Graham Manufacturing is a small manufacturer that uses machine-hours as its
IgorLugansk [536]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Company - Job 62 - Job 63

Direct materials: $60,000 - $4,500 - $7,100

Direct labor: $25,000 - $2,500 - $4,200

overhead costs $72,000

Machine hours: 90,000 - 1,350 - 3,100

During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were $71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units were completed during the month.

A) To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 72,000/90,000

Estimated manufacturing overhead rate=  0.8 per machine-hour

B) Total manufacturing cost= direct material + direct labor + allocated overhead

Job 62:

Total manufacturing cost= 4,500 + 2,500 + 0.8*1,350

Total manufacturing cost= $8,080

Job 63:

Total manufacturing cost= 7,100 + 4,200 + 0.8*3,100

Total manufacturing cost= $13,780

C) Unitary cost= total cost/ number of units

Job 62:

Unitary cost= 8,080/1,000= $8.08

Job 63:

Unitary cost= 13,780/2,000= $6.89

D) First, we need to apply overhead for the company as a whole:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.8*95,000

Allocated MOH= $76,000

Now, we can calculate the over/under applied overhead:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 71,000 - 76,000

Overapplied overhead= $5,000

E) Job 62= 14,000

Job 63= 18,000

Gross profit= sales - cost of goods sold

Job 62:

Gross profit= 14,000 - 8,080= $5,920

Job 63:

Gross profit= 18,000 - 13,780= $4,220

7 0
3 years ago
If you buy a share of stock for $15 and sell it two years later for $18.50, what is the annual percent return (on a compounded b
nadya68 [22]

Answer:

11%

Explanation:

Compounding is the method used to determine the future worth of an amount today while discounting is the method used to determine the present value of a future amount.

Both are related by

Fv = Pv(1 + r)^n

where Fv is the future amount

Pv is the present value

r = rate

n = time

As such,

18.5 = 15 (1 + r)^2

1.2333 =  (1 + r)^2

1 + r = 1.11

r = 0.11

the annual percent on returns is 11%

7 0
3 years ago
Which is not a way that government provides incentives for innovation
olga nikolaevna [1]
Ummm, Government does not fund nonprofits.
8 0
3 years ago
Read 2 more answers
Leaf] Leaf, an employee of the California Department of Forestry, insisted on signing inter-office memoranda with his name and t
dusya [7]

Answer: If it has a secular legal purpose, has a primary effect of neither advancing nor inhibiting religion, and does not foster an excessive government entanglement with religion

Explanation:

The Establishment clause prevent the Congress from having a state religion or honig preference to one religion above another one.

The circumstances that a state law would be permissible under the establishment clause include if it has a secular legal purpose, has a primary effect of neither advancing nor inhibiting religion, and does not foster an excessive government entanglement with religion.

5 0
2 years ago
If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.
nika2105 [10]
<span>Each of these categories adds to the overall unemployment total. In this case, we would add all four values to find the total number of unemployed persons. (10+12+13+12) gives a total of 47 unemployed persons in the pool. Re-entrants and new entrants might sound like they are not unemployed, but these terms, per BLS definitions, are not yet employed so they do not leave the "unemployed" ranks.</span>
8 0
3 years ago
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