[4 Questions each 4 points]Please show all your detail steps to calculate the answer(s) of each question.If you just show the answer(s) to each question without showing detail steps, you will NOT earn any point for this assignment.

Please use 2020 TaxLaw

Question1.Ashley (a single taxpayer) is the sole owner of ABC LLC. The LLC (treated as a soleproprietorship for Federal income tax purposes) reports QBI of $900,000 and is not a specifiedservices business. ABC paid total W2 wages of $300,000, and the total unadjusted basis of property held by ABCis$30,000. Ashleys taxable income before the QBI deduction is $740,000(this is also her modified taxable income).

What is Ashley's QBI deduction for2020?

Question2.Diego and Molly are married and will file a joint return. Diego earns $300,000 from his singlemember LLC (a law firm), which the tax law treats as a sole proprietorship. Wages paid by thelaw firm amount to $40,000; the law firm owns no significant property. Molly is employed as atax manager by a local CPA firm. Diego and Mollys modified taxable income is $381,400 (this also equals taxable income before the QBI deduction).

What is their tentative QBI based on the W2 Wages/Capital Investment Limit? Determine their allowable QBI deduction?

Question3.Susan,asingle taxpayer,owns andoperates abakery asa soleproprietorship. Thebusiness isnotaspecifiedservices business.In 2020,the businesspays $100,000inW2 wages,holds$150,000ofqualifiedproperty,andreports$350,000ofqualifiedbusinessincome(allofwhichis qualified business income). Susan has no other items of income or loss and will take thestandarddeduction.

Assume the QBI amount is net of the self-employment tax deduction.

What is Susan's qualified business income deduction?

Question4.Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is nota specified services business. In 2020, the business pays $60,000 of W2 wages and reportsqualified business income of $200,000. Susan also has a part-time job earning wages of $11,000 and receives $3,200 of interest income.

Assume the QBI amount is net of the self-employment tax deduction.

What is Susan's tentative QBI based on the W2 Wages/Capital Investment Limit?

What is Susan's tentative QBI based on the W2 Wages/Capital Investment Limit?DetermineSusan's allowable QBI deduction?