Question
1. Silver Corporation, which operates a department store, sells a television to a store employee for $300. The regular customer price is $500, and the
1. Silver Corporation, which operates a department store, sells a television to a store employee for $300. The regular customer price is $500, and the gross profit rate is 25%. The corporation also sells the employee a service contract for $120. The regular customer price for the contract is $150. How much must the employee include in income from both these transactions in total?
| a. | $125 | |
| b. | $30 | |
| c. | $75 | |
| d. | $0 |
2. Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ellies taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ellies QBI deduction for 2019?
| a. | $150,000 | |
| b. | $75,750 | |
| c. | $148,000 | |
| d. | $180,000 |
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Personal Trainer 3 0 Online For Albright/Ingram/Hills Managerial Accounting Information For Decisions
Authors: Thomas L. Albright, Robert W. Ingram, John S. Hill
4th Edition
0324233388, 978-0324233384
