Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. Required: a. Calculate Roquan's deduction for qualified business income. b. Assume the same facts provided above, except Roquan's taxable income before the deduction for qualified business income is $300,000. Note: For all requirements, leave no answer blank. Enter zero if applicable.
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. Required: a. Calculate Roquan's deduction for qualified business income. b. Assume the same facts provided above, except Roquan's taxable income before the deduction for qualified business income is $300,000. Note: For all requirements, leave no answer blank. Enter zero if applicable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net
business income of $90,000 from his law practice (net of the associated for AGI self-employment tax
deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property
(unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His
taxable income before the deduction for qualified business income is $100,000.
Required:
a. Calculate Roquan's deduction for qualified business income.
b. Assume the same facts provided above, except Roquan's taxable income before the deduction for
qualified business income is $300,000.
Note: For all requirements, leave no answer blank. Enter zero if applicable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fdd5d65-7352-48f5-bff8-28368afb7b3f%2F6a46cdd3-e1ba-438b-821c-ff34c7b1914c%2Fvrfwtvp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net
business income of $90,000 from his law practice (net of the associated for AGI self-employment tax
deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property
(unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His
taxable income before the deduction for qualified business income is $100,000.
Required:
a. Calculate Roquan's deduction for qualified business income.
b. Assume the same facts provided above, except Roquan's taxable income before the deduction for
qualified business income is $300,000.
Note: For all requirements, leave no answer blank. Enter zero if applicable.
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