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 $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of $213,500.
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 $181,500?
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Auditing And Assurance Services
Authors: Alvin Arens, Randal Elder, Mark Beasley
14th Edition
1256560812, 9781256560814
