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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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Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return
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Answer:

The correct answer is letter "A": voidable.

Explanation:

Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.

Thus, <em>Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).</em>

4 0
3 years ago
You are CEO of Eastco, and you recently paid $58,000 or about 2x revenue (well under industry average) to purchase Westco, which
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Answto be honest I really don’t know er:

Explanation:

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4 years ago
There are a few people in line waiting to be served. you are taking care of one customer and she insists you gave her the incorr
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You enforce the rules, state you did correctly count the amount of money, no exceptions.
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3 years ago
Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p
sp2606 [1]

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company

2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)

3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)

5 0
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Gloria is a broker for Jan. Jan is not satisfied with Gloria's work, so she fires her by email three months into a six-month ter
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No, Gloria can not legally continue to work for Jan, because Jan has withdrawn her consent for Gloria to act on her behalf.

<h3>What is meant by consent?</h3>

Consent refers to the parties' mutual comprehension of the terms of the agreement. The contract requires the voluntary assent of both parties. If there are certain mistakes, or if one party attempts to deceive or pressure the other, consent will not be considered voluntary or genuine.

The importance of consent in business-

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  • It makes us "ethical" marketers who recognize that acting morally will increase our chances of success in addition to ensuring that we abide by the law.

The three sorts of consent that an organization may get are as follows:

  1. Explicit Consent: An individual must be given a clear choice regarding whether to agree or object to the collection, use, or disclosure of their personal information in order to give their explicit consent.
  2. Implicit Consent: Implied consent is consent that isn't explicitly given by a person but is instead inferred from their behavior and the specific facts and circumstances surrounding the scenario (or, in certain cases, from their silence or inactivity).
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To know more about laws and regulations important for employers, here

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4 0
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