Mason (single) is a 50 pe
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a
$189,000 salary working full time for Angels Corporation. Angels Corporation reported $436,000 of taxable
business income for the year (2023). Before considering his business income allocation from Angels and the
self-employment tax deduction (if any), Mason's adjusted gross income is $189,000 (all salary from Angels
Corporation). Mason claims $68,000 in itemized deductions. Answer the following questions for Mason.
Note: Leave no answer blank. Enter zero if applicable.
c. Assume the same facts as question (b), except that Angels Corporation reported $186,000 of taxable business income for the
year. What is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.
Deduction for qualified business income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb93466fc-9139-4799-9790-6a589f14492b%2F98cd679d-31bc-4817-94b6-0e6603e4cc43%2Fqzv1anc_processed.jpeg&w=3840&q=75)
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Required information
[The following information applies to the questions displayed below.]
Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a
$189,000 salary working full time for Angels Corporation. Angels Corporation reported $436,000 of taxable
business income for the year (2023). Before considering his business income allocation from Angels and the
self-employment tax deduction (if any), Mason's adjusted gross income is $189,000 (all salary from Angels
Corporation). Mason claims $68,000 in itemized deductions. Answer the following questions for Mason.
Note: Leave no answer blank. Enter zero if applicable.
c. Assume the same facts as question (b), except that Angels Corporation reported $186,000 of taxable business income for the
year. What is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.
Deduction for qualified business income
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