Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of $213,500.

a. What is Robert's qualified business income? $305,000? (correct)

b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $213500(incorrect), $91500(incorrect).