Keiji Jones is the owner of a small retail business operated as a sole proprietorship....
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Accounting
Keiji Jones is the owner of a small retail business operated as a sole proprietorship. During 2021, his business recorded the following items of income and expense:
| Revenue from inventory sales | $ 147,000 |
|---|---|
| Cost of goods sold | 33,500 |
| Business license tax | 2,400 |
| Rent on retail space | 42,000 |
| Supplies | 15,000 |
| Wages paid to employees | 22,000 |
| Payroll taxes | 1,700 |
| Utilities | 3,600 |
Required:
Assume that Keijis business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate Keijis 2021 QBI deduction, before any overall taxable income limitation.
Were SALES-COGS-OPERATING EXPENSES=TAXABLE INCOME = 26,800.
ANSWER $5,360 Is not correct
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