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gtnhenbr [62]
3 years ago
14

Haley, a single taxpayer, owns and operates a Cafe (as a sole proprietorship). The business is not a specified services business

. In 2019, the business pays $60,000 in W-2 wages, has $150,000 of qualified property, and $200,000 in net income (all of which is qualified business income). Haley also has a part-time job earning wages of $11,000, receives $3,200 of interest income, and will take the standard deduction. What is Haley’s qualified business income deduction?
Business
1 answer:
Lunna [17]3 years ago
4 0

Answer:

A. Qualified Business Income(QBI):- This is the Net income earned over and above the expenses. This is the business profit which is being earned over an accounting period. To calculate the QBI following are not considered

1. Interest Income 2. Income Earned Outside USA 3. Capital gain or Losses 4. Dividends and 5.Certain payments made to partners and Shareholders.

B. Qualified Business Income Deduction:- To calculate the QBI deduction the certain income limits have been defined. The QBI deduction is available at the rate of 20% of the QBI to the self employed and small business owners.

Single Filer- The limit in 2020 is $ 1,63,300 as Total Income

Joint filers- The Limit in 2020 is $ 3,26,600 as Total Income.

Since Haley does not qualify the Single Filer Limit as mentioned above, his QBI deduction is 0(Zero).

Explanation:

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In previous years, Cox Transport reacquired 2 million treasury shares at $22 per share and, later, 1 million treasury shares at
Hoochie [10]

Answer:

24 million shares  ; $16 million

Explanation:

The computation of the weightage number of treasury shares are shown below:

             Number of shares       Price       Total

                   2                              $22         $44 million

                   1                               $28         $28 million

Total           3                                               $72 million

So, the weighted average number of shares would be

= $72 ÷ 3 = 24 million shares

Now the journal entry would be

Cash A/c Dr $64 million                  (2 million treasury shares × $32)

          To Paid in capital - share repurchase A/c $16 million

          To Treasury stock $48 million    (24 million treasury shares × $2)

(Being the treasury shares are sold)

4 0
3 years ago
Kendra works as an independent representative for a jewelry company. She holds "parties" in peoples' homes where she can display
katrin2010 [14]

Answer:

The form of retailing that this represents is non-store retailing,  specifically direct selling.

Explanation:

The types of retailing are: store retailing and non-store retailing. Non-store retailing is when the sells occur outside of the store and it has different types. In this case, it is direct selling because it refers to sells where the sales person works on its own and makes demonstrations and Kendra holds parties in peoples' homes to display and talk about the jewelry she sells.

3 0
3 years ago
Which of the following is included in the consumption component of U.S. GDP? Question 12 options:
frosja888 [35]

Answer:

Answer is option b, i.e. purchase of natural gas by U.S. households.

Explanation:

Consumption component of U.S. GDP includes purchase of various durable goods, non-durable goods, and also various intangible services. But anything that is purchased as a means of investment rather than for personal consumption is not regarded as consumption component in GDP. Here, purchase of newly constructed houses is an asset and thus, is not included in these components. Similarly, purchase made for business purposes is also excluded from the list of consumption components.

8 0
4 years ago
A 16-ounce bottle of Prairie Herb vinegar sells for $4.95, and a 16-ounce bottle of Heinz vinegar costs $1.05. Prairie Herb vine
Svetlanka [38]

Answer:

Price Skimming

Explanation:

Price skimming: It is a pricing strategy of a firm that allow firm to use higher price of a product initially, however, firm reduce the price over the period of time to gain more marketshare by penetrating the product into different segment, which are price sensetive segment. Higher price at the beginning help the firm to gain more profit to cover most of the cost as demand is high at the beginning due to brand value and buzz created by the firm before launching the product in the market.

In the given case, Prairie herb vinegar have sold the 16-ounce bottle at higher price than Heinz Vinegar, however, they are used in the same way, as Prairie Herb vinegar is new to the market, perceived to be of higher quality, and provides a unique flavor to foods, which is a example of price skimming.

4 0
3 years ago
Which situation would not change a buyers market into a sellers market?
Alik [6]
I think the correct answer would be more investors decide to put their money into construction. A buyers market is characterized by having an excess supply as compared to the demand. So as the more investors put money into the manufacture of a product supply would increase while demand is lower.<span />
7 0
3 years ago
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