Mr. Perry is an unmarried individual with no dependent children. He reports the following information. Assume the taxable year is 2018.

Wages $ 65,000, Schedule C net profit 11,650, Interest from savings account 500, Self-employment Tax on Schedule C net profit 1,646.

a.) Assume that Mr. Perrys itemized deductions total $9,000 and his Schedule C net business profit is qualified business income under Section 199A. Compute AGI and taxable income.

b.) Assume that Mr. Perrys itemized deductions total $14,000 and his Schedule C net business profit is qualified business income under Section 199A. Compute AGI and taxable income.