Rachel Is an Engineer Who Practices as a Sole Proprietor

question 70

Essay

Rachel is an engineer who practices as a sole proprietor.This year,Rachel had net business income of $500,000 from her business.Assume that Rachel pays $20,000 wages to her employees,she has $500,000 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:

Limbic System

A collection of structures in the brain that includes the hippocampus, amygdala, septum, thalamus, and hypothalamus. These structures produce feelings such as pleasure, pain, anger, sexuality, fear, and affection. Referred to as the “emotional brain” and works in concert with other parts of the brain, such as the frontal lobes.

Histones

Proteins that wrap around DNA to help form chromosomes.

Chromosomes

Forty-six tiny strands of DNA, found in the nucleus of each cell of the body, which are the source of biological inheritance.

Genes

Functional units or sections of DNA that provide a blueprint or code to the cell for how to produce proteins and enzymes. Found on chromosomes, they come in matching pairs, one from each parent.