1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 pe
ahrayia [7]

Answer and Explanation:

The computation is given below:

For Bank A,

Effective annual rate is

= (1 + 0.10 ÷ 12)^12 - 1

= 10.47%

For Bank B,

Effective annual rate is

= (1 + 0.11 ÷ 4)^4 - 1

= 11.46%

And,

For Bank C,

Effective annual rate = 12%

Therefore, Bank A is best to borrow at lowest effective annual rate

8 0
3 years ago
Maria and Beth are college students who share an off-campus apartment. The rent is $800 a month, which they agreed to share equa
LenKa [72]

Answer:

a small claims court

Explanation:

A small claims court is a local court where a plaintiff can make a claim regarding small amounts of money. Usually small claims courts only have jurisdiction over private disputes regarding money owed under agreement (applies to Maria's claim), unpaid loans, property damage, contract breaches, etc. Small claims court can handle cases up to $35,000 and you usually do not need a lawyer.

4 0
3 years ago
Read 2 more answers
If you sell only one or just a few items your business is
GarryVolchara [31]

Answer:

selling half

Explanation:

because your not selling everything so not all

5 0
3 years ago
True or False? The United States does not have publicly financed health insurance specifically for the unemployed.
iren [92.7K]

Answer:

True

Explanation:

The United States has no single nationwide system of health insurance.

In the event that an employed worker's spouse loses his/her job to lay-off, the insurance premium financed by the active worker for this family coverage should provide basic health benefits to unemployed workers and their dependents because government does not provide for such category of active group except for senior citizens.

Health insurance is purchased in the private marketplace or provided by the government to certain groups. Private health insurance can be purchased from various organizations such as profit commercial insurance companies or from non – profit insurers.

3 0
3 years ago
Zeke's Zipline Adventures sold a bus used in the business for $16,000. Zeke's original cost of the bus was $15,000 and the adjus
elena55 [62]

Answer:

sorry, i just want the points.

Explanation:

6 0
3 years ago
Other questions:
  • The management of Penfold Corporation is considering the purchase of a machine that would cost $310,000, would last for 5 years,
    14·1 answer
  • 75 of 100 - jim inherited a property that has not been maintained in years, the property needs new appliances, a roof, new sidin
    7·1 answer
  • Eldrick bought a certificate that allows him to apply for a tax deed after a certain period. what did eldrick purchase?
    13·1 answer
  • Sunny Corporation began the year with cash of $ 141, 000 and land that cost $ 55, 000. During the year Sunny earned service reve
    14·1 answer
  • Your auto insurance policy has a 200 monthly premium and 700 deductible. What is the maximum amount you will have to pay out of
    8·2 answers
  • A venture capitalist, willing to invest $1,000,000 , has three investments to choose from. The first investment, a software comp
    14·1 answer
  • Jenkins Inc. has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The YTM on the company’s
    9·1 answer
  • To estimate the value of a nonconstant growth stock, we can estimate the value of each dividend during the period of nonconstant
    6·1 answer
  • Average total cost is very high when a small amount of output is produced because.
    14·1 answer
  • Denials can occur as a result of errors that occur at various points in the revenue cycle. Identify at least one error that can
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!