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How to calculate (5) and (6)? Through November, Cameron has received gross income of $131,000. For December, Cameron is considering whether to accept one more
How to calculate (5) and (6)?
Through November, Cameron has received gross income of $131,000. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $9,860 of revenue at a cost to Cameron of $4,100, which is deductible for AGI. In contrast, engagement 2 will generate $7,200 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2 . Assume he has no itemized deductionsStep by Step Solution
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