Through November, Cameron has received gross income of $128,500. For December, Cameron is considering whether to accept on more work engagement for the year. Engagement 1 will generate $9,210 of revenue at a cost to Cameron of $3,850, which is deductible for AGI. In contrast, engagement 2 will generate $6,700 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. 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 (6) Deduction for QBI Taxable income Engagement 1 Engagement 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Through November, Cameron has received gross income of $128,500. For December, Cameron is considering whether to accept one
more work engagement for the year. Engagement 1 will generate $9,210 of revenue at a cost to Cameron of $3,850, which is
deductible for AGI. In contrast, engagement 2 will generate $6,700 of qualified business income (QBI), which is eligible for the 20
percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year.
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
(6) Deduction for QBI
Taxable income
Engagement 1
Engagement 2
Transcribed Image Text:Through November, Cameron has received gross income of $128,500. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $9,210 of revenue at a cost to Cameron of $3,850, which is deductible for AGI. In contrast, engagement 2 will generate $6,700 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. 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 (6) Deduction for QBI Taxable income Engagement 1 Engagement 2
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