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Delvig [45]
2 years ago
11

Thad, a single taxpayer, has taxable income before the QBI deduction of $176,000. Thad, a CPA, operates an accounting practice a

s a single member LLC (which he reports as a sole proprietorship). During 2020, his proprietorship generates qualified business income of $140,800, W–2 wages of $105,600, and $8,400 of qualified property.
Required:
What is Thad's qualified business income deduction?
Business
1 answer:
tester [92]2 years ago
3 0

Answer: $21,007.36

Explanation:

Qualified business income deduction for a single member small business:

= Qualified business income * 20% * Applicable percentage if taxable income is above $163,300 limit on QBI deduction

Applicable percentage if taxable income is above $163,300 limit on QBI deduction:

Amount over $163,300 limit:

= 176,000 - 163,300

= $12,700

= 100% - (12,700 / 50,000)

= 100% - 25.4%

= 74.6%

QBI deduction = 140,800 * 20% * 74.6%

= $21,007.36

<em>Note: The $50,000 used in dividing the difference above is the difference between the $163,300 limit for full deduction and $213,300 limit for a partial deduction. </em>

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Compare and contrast the product vs. process layouts. What are the advantages &amp; disadvantages? List examples of products tha
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Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

* The main advantages regarding the product layouts include:

a. A potentially huge rate of output.

b. Lowering unit costs.

c. Low training costs and a broad span of supervision due to specialization.

d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

c. The system is not particularly adaptable to changes in process design or changes in the volume of output.

d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

e. Preventive maintenance costs and the capacity for quick repairs are necessary to ensure high utilization.

f. Incentive plans tied to individual output are impractical.

* The main advantages regarding the process layouts are:

a. They can manage a variety of processing requirements.

b. They are less vulnerable to equipment failures than product layouts are.

c. The general-purpose tools used often are less costly than the specialized equipment used in product layouts. It is also usually easier and less costly to manage and repair.

d. Specific stimulation systems are possible.

* The main disadvantages regarding the process layouts are:

a. Work-in-process inventory costs can be high (in manufacturing).

b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

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During the RFP stage, B2B buyers:
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Answer:

The correct answer is c. invite suppliers to bid on supplying what is requested.

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B2B sales require special attention due to the profile of your buyer.

In this type of sale, buyers have a position much more linked to decision making, so they spend more time on a detailed and critical analysis of the proposal.

The B2B buyer chooses companies that allow the creation of strong business relationships, with a guarantee of supply and deadlines.

This is because B2B negotiations demand an effort, time and investment that, in case of any inconvenience, it can be difficult to recover and find a new supplier.

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The last custodian of the petty cash fund was hospitalized and you have been asked to take stock of the fund and replenish it. W
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Answer:

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Advertising expense                               $120

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Answer:

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Reference: Elkins, Hashaw. “The Effect of Celebrities in Advertisements.” Small Business - Chron.com, 29 Mar. 2019

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