Question
Please use this information for the next THREE questions! This question is worth 9 points, as allocated to parts a, b, and c below. Don,
Please use this information for the next THREE questions!
This question is worth 9 points, as allocated to parts a, b, and c below.
Don, Peggy, and Roger operate an advertising agency located on Madison Avenue in New York City as a partnership. Don owns 60% of the business, Peggy owns 30%, and Roger owns 10%. For the current year, the advertising agency reports the following from its operations:
Sales Revenues | $972,000 |
Trade and business expenses (salaries, utilities, rent, etc.) | $457,000 |
Charitable Contributions | $30,000 |
Short Term Capital Losses | $46,000 |
Long Term Capital Gains | $15,000 |
By how much will Don's AGI increase due to his partnership activities? Assume he has no other capital gains or losses. Note: QBI is deducted after AGI and before taxable income
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