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Problem 04-46 (LO 04-3) (Algo)

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Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $183,500 salary working full time for Angels Corporation. Angels Corporation reported $414,000 of taxable business income for the year (2022). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $183,500 (all salary from Angels Corporation). Mason claims $57,000 in itemized deductions. Answer the following questions for Mason.

Note: Leave no answer blank. Enter zero if applicable.

Problem 04-46 Part c (Algo)

c. Assume the same facts as question (b), except that Angels Corporation reported $164,000 of taxable business income for the year. What is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.