Patricia Is a 25% Owner and an Active Member in the PBK

question 10

Multiple Choice

Patricia is a 25% owner and an active member in the PBK LLC, which operates a qualified trade or business for purposes of the deduction under § 199A. Patricia's distributive share of qualified income from the LLC is $250,000 for the year (the LLC's income is $1,000,000) . Her share of the LLC's W-2 wages is $40,000, and she received a guaranteed payment for services of $30,000. Her share of the LLC's unadjusted basis immediately after acquisition of qualified property is $1,200,000. How much is her qualified business income for this separate trade or business?

• A) $20,000.
• B) $35,000.
• C) $40,000.
• D) $47,500.
• E) $50,000.

---

Definitions:

At-Risk Drinking

Alcohol consumption patterns that increase the likelihood of developing health problems or compound existing ones.

Alcoholic Drinks

Beverages containing ethanol, a type of alcohol produced by fermenting grains, fruits, or other sources of sugar.

Tolerance

The body's reduced response to a drug after prolonged use, requiring an increased dosage to achieve the original effect.

Illicit Substance

A substance whose production, sale, or use is prohibited by law.