Alicia 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 $325,000 after deducting alicia’s $100,000 salary. in addition to her compensation, abc pays alicia dividends of $250,000. after reviewing comparable companies, you determine that reasonable compensation for someone with alicia’s experience and responsibilities is $200,000. what is alicia’s qualified business income?

$225,000

Explanation:

Given that,

Net income = $325,000

Alicia’s salary = $100,000

Dividends = $250,000

Reasonable compensation = $200,000

Actual Reasonable compensation = Reasonable compensation - Alicia’s salary

                                                         = $200,000 - $100,000

                                                         = $100,000

Alicia’s qualified business income = Net income - Actual Reasonable compensation

                                                         = $325,000 - $100,000

                                                         = $225,000

i would have to say its c

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.