Through November, Cameron has received gross income of $100,000. For December, Cameron is considering whether to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Through November, Cameron has received gross income of $100,000. For December, Cameron is considering whether to accept one more work engagements for the year. Engagement 1 will generate $8,360 of revenue at a cost to Cameron of $4,500, which is deductible for AGI. In contrast, engagement 2 will generate $9,850 of qualified business Income (QBI) which is eligible for the 20% QBI deduction. Cameron files as a single taxpayer. 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 (5) (6) Deduction for QBI Taxable income Engagement 1 Engagement 2 Through November, Cameron has received gross income of $100,000. For December, Cameron is considering whether to accept one more work engagements for the year. Engagement 1 will generate $8,360 of revenue at a cost to Cameron of $4,500, which is deductible for AGI. In contrast, engagement 2 will generate $9,850 of qualified business Income (QBI) which is eligible for the 20% QBI deduction. Cameron files as a single taxpayer. 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 (5) (6) Deduction for QBI Taxable income Engagement 1 Engagement 2
Expert Answer:
Answer rating: 100% (QA)
ANSWER Gross income before new work 1 engagement 2 Income from engagemen... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
The management of Delta Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $1.75 per pound, and raw sugar can be sold without further...
-
The management of Pittsburgh Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $1,650 per ton, and ingot can be sold without...
-
The management of Dominican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $ 2.20 per pound, and raw sugar can be sold without...
-
Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. Required: (Unless otherwise...
-
After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew how profitable its customers were. Olson...
-
A rotary drum filter is to be used to filter a lime slurry. The drum rotates at a rate of $0.2 \mathrm{rpm}$, and $30 %$ of the drum surface is submerged beneath the slurry. The filter operates at a...
-
What is the objective of the Post-Mission Phase of Operation? How do we bound its starting and ending points?
-
Jean Walker is making plans for spring break at the beaches in Florida. In applying techniques she learned in her quantitative methods class, she has identified the activities that are necessary to...
-
Thomas and Dorothy Garfield invested $5,900 in a savings account paying 5% annual interest when their daughter, Lisa, was born. They also deposited $1,100 on each of her birthdays until she was 15...
-
In a physics lab experiment, a compressed spring launches a 20 g metal ball at a 30 angle. Compressing the spring 20 cm causes the ball to hit the floor 1.5 m below the point at which it leaves the...
-
Find the total electric field in N/C at x = 1.00 cm in part (b) of the figure above given that q = 1.00 C. n (b) Find the total electric field in N/C at x = 12.40 cm in part (b) of the figure above....
-
Many companies claim to have a team-based organization, yet relatively few have actually adopted this form of departmentalization. Describe three (3) structural features that would suggest that a...
-
Which portfolio is most sensitive and which portfolio is least sensitive to the change from the CAPM to FF3 model? Why? r-squared alpha Market beta Smb beta Hml beta Expected return per month Small...
-
Utilizing the NY Times article, Inside Amazon: Wrestling Big Ideas in a Bruising Workplace" Aug. 15, 2015, determine contributing factors within the article to the issues of organizational...
-
Griffin Corporation prepared the following two Income statements (simplified for illustrative purposes): First Quarter Second Quarter Sales revenue Cost of goods sold Beginning inventory $ 12,800...
-
In your opinion, how do compensation systems impact employee attitudes and behaviors such as citizenship, culture, and morale? How has an organization's approach to compensation impacted your own...
-
cost and sales data. Sales mix is determined based upon total units sold. Unit selling price Unit variable costs Unit contribution margin Sales mix Fixed costs are $642,428. Pairs of Shoes $103 60...
-
Four GWU students have been selected to taste food sold by 3 different food trucks labeled as food truck A, B and C on H & 22nd Streets every Monday for 3-weeks. For each student, food trucks are...
-
Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside general partnership. In addition to their normal share of the partnership's annual income, Oscar and Felix...
-
On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. a. What is the amount and character of the gain...
-
Last December 31, Ramon sold the 10 percent interest in the Del Sol Partnership that he had held for two years to Garrett for $400,000. Prior to selling his interest, Ramon's basis in Del Sol was...
-
Several independent situations are described below. 1. The owner of the business included his personal dental expenses in the entitys income statement. 2. The company spent $25 000 on computer...
-
Gas Giant Australia Ltd signed a 20year deal to sell gas to a neighbouring country for \($1.8\) billion. The contract was signed on the last day of Gas Giant Australia Ltds financial year, 30 June....
-
Goode Medical Laboratory Ltd, GMLL, a medical research entity, has discovered a cure for a previously incurable disease. GMLL is protecting the drugs formula by keeping it secure in the company...
Study smarter with the SolutionInn App