What is roberts qualified business income

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Exercise (Algorithmic)

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 records net income of $264,500 after deducting Robert's $79,350 salary. In addition to his compensation, ABC pays Robert dividends of $185,150.

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 $169,350?

Reference no: EM132380498

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