Question
Eileen's filing status is head of household. She owns and operates a hardware store, which has the following revenues and expenses for the current year.
Eileen's filing status is head of household. She owns and operates a hardware store, which has the following revenues and expenses for the current year. Revenue $ 370,000 Expenses: Cost of goods sold 90,000 Property taxes 80,000 Repairs and maintenance 50,000 Advertising and other costs 30,000 During 2023, Eileen received corporate bond interest income of $8,800, qualified dividend income of $3,000, and has net capital gains of $4,000. She has no other items that would affect her adjusted gross income (AGI). Her itemized deductions total $17,000. Required: a. Using good form, compute Eileen's qualified business net income (QBI) generated from her hardware store.
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