Campbell, a Single Taxpayer, Has $400,000 of Profits from Her

question 24

Multiple Choice

Campbell, a single taxpayer, has $400,000 of profits from her general store that 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:

Single Family

A term typically referring to a household consisting of one set of parents and their biological or adopted children living in a single dwelling.

Consultant

A professional who provides expert advice in a particular area or specialized field to improve client outcomes.

Role

A set of expectations or functions associated with a particular position or status within a group or society.

Spokesperson

A spokesperson is an individual appointed or designated to speak on behalf of an organization, group, or another person, particularly to the media or public.