1. In 2022, Jim and Helen are a married couple who file jointly and take the standard deduction of $25,900. Jim, an executive vice-president of a bank, has a salary of $300,000. Helen is the owner of a sole proprietorship in which she makes custom invitations for celebrity clients. In 2022, Helens business had qualified business income of $200,000. The sole proprietorship paid $60,000 in w-2 wages (note: these wages are already deducted in determining the $200,000 of qualified business income). In addition, the unadjusted basis in assets was $130,000 (this amount includes her printing press and office furnishings. She rents the space in which her business is located).

Besides Jims $300,000 salary, they also have $15,000 of interest income.

Required: Determine Jim and Helens taxable income for 2022. Note: you do NOT need to determine their tax liability.

2. Helen is a dentist that she operates as a sole proprietorship with qualified business income of $200,000. The business has $40,000 in w-2 wages (Note: Helen does not receive w-2 incomeshe is the self-employed owner of this sole proprietorship.) Her unadjusted basis in assets is $200,000 (the dental equipment).

In addition of Jims salary and Helens sole proprietorship income they have $15,000 of interest income. They will continue to file jointly and take the $25,900 standard deduction rather than itemizing. Under this scenario, what is Jim and Helens taxable income in 2022?