Problem 4-32 (LO 4-1) (Algo) Through November, Cameron has received gross income of $95,000. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $8,580 of revenue at a cost to Cameron of $4,400, which is deductible for AGI. In contrast, engagement 2 will generate $9,750 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. Description Engagement 1 Engagement 2 (1) Gross income before new work engagement $ 95,000 $ 95,000 int (2) Income from engagement 8,580 9,750 (3) Additional for AGI deduction i 4,400 rences (4) Adjusted gross income (6) Deduction for QBI Taxable income $ 99,180 $ 104,750 12,200 12,000 1,950 $ 87,180 $ 90,800