Michelle is a 50% shareholder in an S corporation. In the current year, she is reporting $20,000 of salary, $1,000 of interest income, $40,000 of qualified business income from the S corporation and $15,000 of long-term capital gain. Michelle's taxable income before the qualified business income deduction is $50,000. Michelle will be allowed a QBI deduction of

A) $7,000.

B) $8,000.

C) $10,000.

D) $15,200.