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 $255,500 after deducting Robert's $76,650 salary. In addition to his compensation, ABC pays Robert dividends of $178,850.
What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $166,650?
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Introductory Financial Accounting for Business
Authors: Thomas Edmonds, Christopher Edmonds
1st edition
1260299449, 978-1260299441
