Taxable Income Assignment | Top Universities
February 21st, 2020
Campbell, a single taxpayer, has $400,000 of profits from the general store that she operates as a sole proprietorship. She has $100,000 of employee wages, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?
- A. $26,000.
- B. $50,000.
- C. $80,000.
- D. $0.
- E. $100,000.
Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($3,700), her emotional distress ($6,000 – she now fears peanut butter), and punitive damages ($44,000). What amount must Pam include in her gross income?
- A. $9,700
- B. $50,000
- C. $47,700
- D. $44,000
- E. Zero – None of these benefits is included in gross income. Get Accounting Homework Help Today.