Marys filing status is head of household. She owns and operates a hardware store, which has the following revenues and expenses for the current year.

Revenue $ 300,000

Expenses:

Cost of goods sold 70,000

Property taxes 50,000

Repairs and maintenance 30,000

Advertising and other costs 10,000

During 2021, Mary received corporate bond interest income of $9,800, qualified dividend income of $8,000, and has net capital gains of $7,000. She has no other items that would affect her adjusted gross income (AGI). Her itemized deductions total $17,000.

Required:

a. Using good form, compute Marys qualified business net income (QBI) generated from her hardware store.

b. Using good form, compute Marys Modified Taxable Income, and also her QBI deduction for 2021.

c. Assume that Mary received corporate bond interest income of $45,000, not $9,800; and that itemized deductions total 27,000, not $17,000. Using good form, compute Marys Modified Taxable Income, and also her QBI deduction for 2021.