Roquan is an attorney and practices as a sole proprietor. Thisyear, Roquan, who is...

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Accounting

Roquan is an attorney and practices as a sole proprietor. Thisyear, Roquan, who is single, had net business income of $90,000from his law practice. Assume that Roquan pays $40,000 wages to hisemployees, he has $10,000 of property (unadjusted basis ofequipment he purchased last year), has no capital gains orqualified dividends, and his taxable income before the deductionfor qualified business income is $100,000. (Leave no answer blank.Enter zero if applicable.) Required: Calculate Roquan’s deductionfor qualified business income. Assume the same facts as earlier,except Roquan’s taxable income before the deduction for qualifiedbusiness income is $300,000.
a. Calculate Roquan’s deduction for qualified businessincome.
b. Assume the same facts as earlier, except Roquan’s taxableincome before the deduction for qualified business income is$300,000.

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Answer aThe deduction is amount determined with respect to any qualifiedtrade or business is the lesser of20 of qualified business income QBI orThe greater of50 of W2 wages with respect to the businesses See Answer

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In: AccountingRoquan is an attorney and practices as a sole proprietor. Thisyear, Roquan, who is single,...Roquan is an attorney and practices as a sole proprietor. Thisyear, Roquan, who is single, had net business income of $90,000from his law practice. Assume that Roquan pays $40,000 wages to hisemployees, he has $10,000 of property (unadjusted basis ofequipment he purchased last year), has no capital gains orqualified dividends, and his taxable income before the deductionfor qualified business income is $100,000. (Leave no answer blank.Enter zero if applicable.) Required: Calculate Roquan’s deductionfor qualified business income. Assume the same facts as earlier,except Roquan’s taxable income before the deduction for qualifiedbusiness income is $300,000.a. Calculate Roquan’s deduction for qualified businessincome.b. Assume the same facts as earlier, except Roquan’s taxableincome before the deduction for qualified business income is$300,000.