Rachel Is an Engineer Who Practices as a Sole Proprietor

question 74

Essay

Rachel is an engineer who practices as a sole proprietor.This year,Rachel had net business income of $400,000 from her business.Assume that Rachel pays $150,000 wages to her employees,she has $20,000 of property (unadjusted basis of equipment she purchased last year),she has no capital gains,and her taxable income before the deduction for qualified business income is $380,000.Calculate Rachel's deduction for qualified business income.

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Definitions:

Social Responsibility

The obligation of individuals, organizations, and businesses to act for the benefit of society at large, often beyond their own interests.

Financial Performance

Refers to the measure of how well a firm is using its assets to generate earnings.

Corporate Social Responsibility

A business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Shareholders

Individuals or entities that own shares in a corporation, giving them a stake in the company's assets and sometimes influence over its management.