Qualified Business Income Deduction and Net Business Interest Limitation. Charlene is an equal partner in the CD Partnership. The partnership does not qualify as a small business under the $26 million gross receipts text. The partnership incurred the following items for the current year.

Gross receipts $ 30,000,000

Minus: Cost of goods sold (21,000,000)

Gross profit $ 9,000,000

General business expenses 2,400,000

Salary expense (W-2 wages) 1,600,000

Depreciation expense 1,000,000

Interest expense 2,000,000

Charlene is single, has no other sources of income, and claims the standard deduction.

Calculate the partnerships ordinary income for the current year and Charlenes taxable income. Assume Charlenes self-employment (SE) tax is $49,400.

Please do not copy from Chegg. Otherwise i have to report the answer.