Joan, a single taxpayer filing as head of household, operates a local candy store as a sole proprietorship. The business has two (2) employees, one who earned $40,000 and another who earned $60,000 in 2020. The business had no significant assets during the year. Joans modified taxable income for 2020 was $155,000 and she reported $195,000 of net business income on Schedule C of her IRS Form 1040.

a. Calculate Joans qualified business income tax deduction for 2020? (3 points)

b. Calculate Joans qualified business income tax deduction for 2020, assuming the same facts as in Q27, except that Joans taxable income before any potential qualified business income tax deduction is $183,300. (3 points)