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1

Accounting

1.Marisol is a partner in a small law firm. She is single. For 2018 her taxable income (before the QBI deduction) was $190,000, and $160,000 of this was attributable to her share of the profits from the law firm. What is her QBI deduction?

2.Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of Janitorial Department that includes not only $350,000 or Grect costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not my $50,000 of direct costs but also 50% of the Janitorial Department? Ca. J = ($350,000 030) + Mond ($50,000 x 0.50 + 5.1 - $350,000 + (0.30 Ny and M - $50,000 + (050) c.) = $350,000 0.30 x M) and M$50,000 -10.50 d.) = $350,000 + (0.30 M) and M = 550.000 10.50-1)

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1.

Total Income = $ 190,000

Pass-through business income = $ 160,000

QBI deduction @ 20% = (160000x20%) = $32,000

The qualified business income (QBI) deduction, also known as Section 199A, allows owners of pass-through businesses to claim a tax deduction worth up to 20 percent of their qualified business income. It was introduced as part of the 2017 Tax Cuts and Jobs Act.

What are pass-through businesses? Most US businesses are not subject to the corporate income tax; rather, their profits flow through to owners or members and are taxed under the individual income tax. Pass-through businesses include sole proprietorships, partnerships, limited liability companies, and S-corporations.

2.please see the attached file.