1. Mary-Jo, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a specified services business. In 2020, the business pays $60,000 in W-2 wages, has $150,000 of qualified property, and $200,000 in net income all of which is qualified business income). Mary-Jo also has a part-time job earning wages of $13,600, receives $3,400 of interest income, and will take the standard deduction. What is Mary-Jo's qualified business income deduction? 2. Mylie, a single taxpayer, owns and operates a restaurant (as a sole proprietorship). The business is not a specified services business. In 2020, the business pays $125,000 in W-2 wages, has $187,500 of qualified property, and $437,700 in net income (all of which is qualified business income). Mylie has no other items of income or loss and will take the standard deduction. What is Mylie's (QBI) qualified business income deduction? 3. A new formed corporation received the following assets exchange for stock: What is the corporation's adjusted basis of each asset to the corporation? Show calculations Basis FMV Appreciation (Built in Loss) Adjusted Basis Equipment 250,000 220,000 Land 400,000 430,000 Trucks/Other 350,000 300,000 Building 2500,000 250,000 4. Ryan, the sole shareholder of Turk Enterprises has a stock basis of $350,000 at the beginning of the year. On July 1, he sells all of his stock for $2 million - (Bill $1 million) and Kyle ($1 million). On January 1, Turk has accumulated E & P of $270,000 and current year E & P of $340,300. Turk makes the following cash distributions: $450,000 to Ryan on March 31; $135,000 to Bill on November 1 and $130,000 to Kyle on December 31. Use the format below to: (1) determine how the distributions are taxed to Ryan, Bill, and Kyle? (2) What is Ryan's recognized gain on the 7/1 sale to Bill and Kyle? Current year E&P Accumulated E&P Distributions Bill Kyle Ryan Basis 350,000 at the beginning of the year Ret. of Cap Basis Div. Inc. Cap. Gains