[Problem 5] [14 points]. The following questions 1 and 2 are independent.

1. Reeds Richards is single and runs a super-hero shop as a sole proprietorship. In 2021, the shop has $160,000 of business profit. Reeds chooses standard deduction and has dividend income of $5,000. (1) Determine Reeds Qualified Business Income (QBI) deduction and taxable income for 2021, and (2) briefly discuss the purpose of the QBI deduction in the tax law [7 points].

2. Briefly summarize (in your own language) the changes in (1) the Tax Reform Act of 2017 and (2) the recent Pres. Bidens Tax Act/Plans. Also, compare the major rationale and goal of each tax law [7 points].