Question

Question 1

Kylie is single and has taxable income of $320,000 of which $130,000 is attributable to her consulting sole proprietorship. She paid W-2 wages to her employees of $75,000. If the threshold amount for 2018 is $157,500, what is Kylie’s qualified business income deduction?

Question 1 options:

	1) $0
	2) $11,000
	3) $26,000
	4) $32,500

Question 2

Sabrina is single and has taxable income of $195,700, of which $140,000 is attributable to her consulting sole proprietorship. She paid W-2 wages to her employees of $75,000. If the threshold amount for 2018 is $157,500, what is Sabrina’s qualified business income deduction?

Question 2 options:

	1) $39,500
	2) $28,000
	3) $20,360
	4) $5,600

Question 3

Carol owns 40% of CJ Partnership. The partnership reports $170,000 of revenue, $60,000 cost of goods sold, and $70,000 of other expenses that include a $2,000 charitable contribution and a $5,000 Section 179 deduction. CJ Partnership also paid $1,500 of doctor bills for Carol. What is the ordinary business income reported on line 1 of Carol’s Schedule K-1?

Question 3 options:

	1) $40,000
	2) $20,300
	3) $18,800
	4) $16,000

Question 4 (1 point)

Jose, who is single, is allocated $510,000 of income and $788,000 of deductions from KYX General Partnership, resulting in a $278,000 loss allocated to him for 2018. Jose’s basis in the partnership is $300,000. How much of this loss must Jose carry forward to 2019?

Question 4 options:

	1) $278,000
	2) $250,000
	3) $28,000
	4) $0

Question 5

Amber has a tax basis of $67,000 in her partnership interest in Lightfoot Partnership, which consists of her $27,000 net contribution to partnership capital and her $40,000 share of partnership debt. Amber receives a distribution of land (a capital asset) with a tax basis of $39,000 and a fair market value of $106,000 in complete liquidation of her partnership interest. The property is not encumbered by any of the partnership’s liabilities. What is Amber’s tax basis for the distributed property?

Question 5 options:

	1) $27,000
	2) $39,000
	3) $67,000
	4) $106,000

Answer 1

Alnish Sec. A Tenth esi buAMO MA tuat on ta the ad 형.pakti tuku, bumw.on,wudjaM , ed Tsad obuinsay tradi or bunen , uiti tuo exuttion ㄧ Mesas em tosable income i 4 32000。Wuch.exuaa th thuuhald amat $151500 and She i don conulin uh Ls

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