Question: Exercise 15-17 (Algorithmic) (LO. 3, 4) Thad, a single taxpayer, reports taxable income before the QBI deduction of $171,500. Thad, a CPA, operates an accounting

Exercise 15-17 (Algorithmic) (LO. 3, 4)

Thad, a single taxpayer, reports taxable income before the QBI deduction of $171,500. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During the tax year, his proprietorship generates qualified business income of $137,200 after deducting self-employment taxes, W2 wages of $102,900, and $8,800 of qualified property.

Assume the QBI amount is net of the self-employment tax deduction. If required, round any division to two decimal places. Round your final answer to the nearest dollar.

What is Thad's QBI deduction?

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4. Explain the strengths and weaknesses of each approach.

d. Describe any challenges in trying to communicate. If there were no challenges, explain why you think it was so easy.

3. Identify the methods used within each of the three approaches.