Question: Exercise 15-15 (Algorithmic) (LO. 3, 4) Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or

Exercise 15-15 (Algorithmic) (LO. 3, 4)

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $275,000 after deducting Robert's $82,500 salary. In addition to his compensation, ABC pays Robert dividends of $192,500.

a. What is Robert's qualified business income?

b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $172,500?

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