hrough November, Cameron has received gross income of $87,500. For December, Cameron is considering whether to accept one ore work engagements for the year. Engagement 1 will generate $7,910 of revenue at a cost to Cameron of $4,250, which is eductible for AGI. In contrast, engagement 2 will generate $9,050 of qualified business income (QBI) which is eligible for the 20% Q eduction. Cameron files as a single taxpayer. alculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has o itemized deductions. Description 1) Gross income before new work engagement 2) Income from engagement 3) Additional for AGI deduction 4) Adjusted gross income 5) Greater of itemized deductions or standard deduction 6) Deduction for QBI Taxable income Engagement 1 Engagement 2 $ 87,500 $ 87,500 7,910 7,910 0 95,410 $ (4,250) 91,160 $
hrough November, Cameron has received gross income of $87,500. For December, Cameron is considering whether to accept one ore work engagements for the year. Engagement 1 will generate $7,910 of revenue at a cost to Cameron of $4,250, which is eductible for AGI. In contrast, engagement 2 will generate $9,050 of qualified business income (QBI) which is eligible for the 20% Q eduction. Cameron files as a single taxpayer. alculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has o itemized deductions. Description 1) Gross income before new work engagement 2) Income from engagement 3) Additional for AGI deduction 4) Adjusted gross income 5) Greater of itemized deductions or standard deduction 6) Deduction for QBI Taxable income Engagement 1 Engagement 2 $ 87,500 $ 87,500 7,910 7,910 0 95,410 $ (4,250) 91,160 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
Transcribed Image Text:Through November, Cameron has received gross income of $87,500. For December, Cameron is considering whether to accept one
more work engagements for the year. Engagement 1 will generate $7,910 of revenue at a cost to Cameron of $4,250, which is
deductible for AGI. In contrast, engagement 2 will generate $9,050 of qualified business income (QBI) which is eligible for the 20% 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 has
no itemized deductions.
Description
(1) Gross income before new work engagement
(2) Income from engagement
(3) Additional for AGI deduction
(4) Adjusted gross income
(5) Greater of itemized deductions or standard deduction
(6) Deduction for QBI
Taxable income
Engagement 1 Engagement 2
87,500 $
87,500
7,910
7,910
(4,250)
0
91,160 $
95,410
$
$
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