Header:Asaka (single) 100% owns and operates Panache LLC (filed as an S corporation). This year, Asaka'squalified business income after all applicable deductions was $400,000. Assume Asaka pays$90,000 wages to her employees and has $10,000 of qualified tangible property. Her overall taxableincome before the deduction for QBI is ~ $370,000.Part 1: Assume Panache LLC is a law practice. What is Asaka's qualified business incomededuction?Part 2: Assume instead that Panache LLC sells clothing for golf teams. What is Asaka's qualifiedbusiness income deduction?

Qualified Business Income (QBI) is a term which is normally used in the United States tax code,…

Part 1: Assume Panache LLC is a law practice. What is Asaka's qualified business income deduction? Part 2: Assume instead that Panache LLC sells clothing for golf teams. What is Asaka's qualified business income deduction?

Part 1: Assume Panache LLC is a law practice. What is Asaka's qualified business income deduction? Part 2: Assume instead that Panache LLC sells clothing for golf teams. What is Asaka's qualified business income deduction?

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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Question

Header:
Asaka (single) 100% owns and operates Panache LLC (filed as an S corporation). This year, Asaka's
qualified business income after all applicable deductions was $400,000. Assume Asaka pays
$90,000 wages to her employees and has $10,000 of qualified tangible property. Her overall taxable
income before the deduction for QBI is ~ $370,000.
Part 1: Assume Panache LLC is a law practice. What is Asaka's qualified business income
deduction?
Part 2: Assume instead that Panache LLC sells clothing for golf teams. What is Asaka's qualified
business income deduction?

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