Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $ 188,500 salary working full time for Angels Corporation. Angels Corporation reported $434,000 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 $188, 500 (all salary from Angels Corporation). Mason claims $67,000 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 $184,000 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.
Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $ 188,500 salary working full time for Angels Corporation. Angels Corporation reported $434,000 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 $188, 500 (all salary from Angels Corporation). Mason claims $67,000 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 $184,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $
188,500 salary working full time for Angels Corporation. Angels Corporation reported $434,000 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 $188, 500 (all salary from
Angels Corporation). Mason claims $67,000 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 $184,000 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.
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