Question
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $309,500 after deducting Robert's $92,850 salary. In addition to his compensation, ABC pays Robert dividends of $216,650.
a. What is Robert's qualified business income? $
b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $182,850? $
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The Auditor An Instructional Novella
Authors: James K. Loebbecke
1st Edition
0130799769, 978-0130799760
