Campbell, a Single Taxpayer, Has $400,000 of Profits (Net of the Deduction

question 66

Multiple Choice

Campbell, a single taxpayer, has $400,000 of profits (net of the deduction for self-employment taxes, the self-employed health insurance deduction, and the deduction for contributions to qualified self-employment retirement plans) from her general store, which she operates as a sole proprietorship. She has no employees, $40,000 of qualified property, and $500,000 of taxable income before the deduction for qualified business income. How much is Campbell's deduction for qualified business income?

• A)$100,000
• B)$80,000
• C)$20,000
• D)$1,000
• E)$0

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Definitions:

Infant Industries

New or emerging sectors or businesses that may not yet be competitive on a global scale and are often protected or supported by government policies until they can compete internationally.

Protected Market

A market shielded from foreign competition by tariffs, quotas, or other trade barriers to protect domestic industries.

Migration

The movement of people from one area to another, often across borders or within a country, for the purpose of settling, work, or seeking better living conditions.

Trade Restrictions

Measures imposed by governments to control the amount and types of goods and services traded across borders, such as tariffs, quotas, and embargoes.