Campbell, a single taxpayer, has $400,000 of profits from her general store that she operates as a sole proprietorship. She has $100,000 of employee wages, $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. $26,000.

• B. $50,000.

• C. $80,000.

• D. $0.

• E. $100,000.

Pam recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($3,700), her emotional distress ($6,000 she now fears peanut butter), and punitive damages ($44,000). What amount must Pam include in her gross income?

• A. $9,700

• B. $50,000

• C. $47,700

• D. $44,000

• E. Zero - None of these benefits is included in gross income.