Exercise 11-3 (LO. 6)In 2020, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platformslike Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is$61,200. Assume Henry takes the standard deduction of $12,400.Click here to access the 2020 individual tax rate schedule to use for this problem.Assume the QBI amount is net of the self-employment tax deduction.a. Compute Henry's QBI deduction and his tax liability for 2020.QBI deduction: $9,760Tax liability (round to the nearest dollar): $Feedback10,155 X

Given: Income = $61,200 Standard deduction = $12,400

Answered: Exercise 11-3 (LO. 6) In 2020, Henry…

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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Requirement For each scenario, indicate the amount that must be included in the taxpayer's gross income. a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. (Assume the tuition scholarship is less than the cost of tuition at Eastern Law School. Enter a "0" for any amounts that should not be included in the taxpayer's gross income.) The amount of tuition scholarship that Larry must include in his gross income is The amount of wages from the campus bookstore that Larry must include in his gross income is More info a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. b. Marty received a $10,000 football scholarship for attending Northern University. The scholarship covered tuition, room and board, laundry, and books. Four thousand dollars of the scholarship…
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