33Through November, Cameron has received gross income of $129,000. For December, Cameron is considering whether to accept onemore work engagement for the year. Engagement 1 will generate $9,340 of revenue at a cost to Cameron of $3,900, which isdeductible for AGI. In contrast, engagement 2 will generate $6,800 of qualified business income (QBI), which is eligible for the 20percent QBI deduction. Cameron files as a single taxpayer.Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he hasno itemized deductions.Description(1) Gross income before new work engagementEngagement 1Engagement 2$129,000$129,000(2) Income from engagement9,3409,340(3) Additional for AGI deduction3,9003,900(4) Adjusted gross income$134,440 $135,800(5) Greater of itemized deductions or standard deduction(6) Deduction for QBITaxable income01,360$134,440 $134,440

Standard DeductionSince Cameron is filing as a single taxpayer and we're assuming he has no itemized…

Answered: 33 Through November, Cameron has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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This was the two part question I'm so sorry for submitting the wrong one.
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Liam Wallace is general manager of Worldwide Salons. During 2018Wallace worked for the company all 18, 1 year at a $ 12,900 monthly salary. He also earned a year-end bonus equal to 15% of his annual salary Wallace's federal income tax withheld during 2018 was $1,161 per month, plus $2,322 on his bonus check. State income tax withheld came to $170 per month , plus $110 on the bonus . FICA tax was withheld on the annual earnings . Wallace authorized the following payroll deductions : Charity Fund contribution of 4% of total earnings and life insurance of $35 per month Worldwide incurred payroll tax expense on Wallace for FICA tax . The company also paid state unemployment tax and federal unemployment tax . Requirement 3. Make the journal entry to record Worldwide's expense for Wallace's total earnings for the year, his payroll deductions and net payDebit Salaries Expense and Bonus Expense as appropriate Credit liability accounts for the payroll deductions and Cash for net pay. An…
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