Raj Is a 50% Shareholder in an S Corporation

question 92

Multiple Choice

Raj is a 50% shareholder in an S corporation.In the current year,he is reporting $50,000 of salary,$2,000 of interest income,$20,000 of qualified business income from the S corporation and $10,000 of long-term capital gain.Raj's taxable income before the qualified business income deduction is $65,000.Raj will be allowed a QBI deduction of

• A)$20,000.
• B)$4,000.
• C)$11,000.
• D)$13,000.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Aphasia

A disruption in the ability to understand or produce language.

Overextensions

A language development phenomenon where children apply a word in a broader context than is appropriate, showing their understanding of language categories.

Prelinguistic Vocalization

Sounds made by infants before they acquire spoken language, such as cooing or babbling, which are foundational to language development.