1] Which of the following statements about the Sec. 199A deduction is false? A. The Sec. 199A deduction does not reduce adjusted gross income.

B. The Sec. 199A deduction is allowed only for federal income tax purposes.

C. The Sec. 199A deduction is taken on Schedule C.

D. The Sec. 199A deduction does not increase a net operating loss.

[2] Tom owns a domestic sole proprietorship that allocates $55,000 of income to him and pays $30,000 of wages to employees. He also owns 30% of a foreign entity that allocates $60,000 of income to him and pays him $50,000 of wages. Neither the sole proprietorship nor the entity are specified service businesses. What is the total amount of qualified business income for Tom? A. $12,000

B. $110,000

C. $85,000

D. $55,000

[3] Shirley, a single taxpayer, has taxable income of $150,000. She has qualified business income (QBI) of $50,000 and no qualified property. The qualified business paid a total of $15,000 in wages. Under Sec. 199A, what is Shirleys deductible amount for the qualified business? A. $7,500

B. $9,975

C. $10,000

D. $15,000

[4] Forrest, a single taxpayer, has taxable income of $315,000. He considers investing in some entities to earn extra income. In which of the following entities should Forrest invest so that he may be able to claim the Sec. 199A deduction? A. A tax services partnership

B. A limited liability partnership of physicians.

C. An S corporation that performs architecture services.

D. A C corporation that performs engineering services.