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.

---

Definitions:

Flashbulb Memories

Vivid, detailed memories of significant or emotional events, which seem to be recorded in one's memory just like a photograph.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Distortion

A modification of the original shape or other characteristic of an object, image, sound, or waveform.

Eyewitness Memory

The recollection by individuals of events they have witnessed, especially significant to criminal investigations.