Qualified Production Activities Deduction (LO. 4) The Rollins Group produces cor

Question

Qualified Production Activities Deduction (LO. 4) The Rollins Group produces corporate training videos. It operates as a sole proprietorship and is 100% owned by Scott Rollins. For 2017, Rollins has gross receipts from qualified production activities of $1,537,000. The cost of goods sold related to these receipts is $1,228,000 and the direct costs related to these receipts is $99,000. Rollins estimates that 30% of its indirect costs of $54,000 are attributable to its qualified production activities. Scott's adjusted gross income is $203,800. a. Rollins qualified production activities income is b. Rollins qualified production activities deduction is s This deduction is based on the qualified production activities income or Scott's C. Assume that Rollins W-2 wages allocable to its domestic production gross receipts (DPGR) are $157,000. Scott's qualified production activities deduction domestic production gross receipts wages paid during the year Rollins Group's qualified production activities deduction is s exceed 50 percent of the

Explanation / Answer

a) $1,537,000

b) $18,342 (9%*203,800), lessor of, adjusted gross income

c) cannot, $18,342

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---