What is Robert qualified business income

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Problem - 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 $325,000 after deducting Robert's $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000.

Required -

a. What is Robert's qualified business income?

b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $200,000? Why or why not?

Reference no: EM132644745

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