QUESTION 16 Sophia is a CPA who has a small tax practice in addition to working as the controller for a local manufacturing business. Sophia runs her tax practice out of a 150-square foot office in her home where she meets clients and works on their tax returns and researches their tax isuues. She meets the exclusive use test for this space. The gross income from her tax practice amounts to $8,500 for the year. Business expenses amount to $1,000. Based on square footage, $4,000 of Sophia's mortgage intcreat and real estate taxes are allocable to the home office. The allocable portion of maintenance, utilities, and depreciation is $4,500. Assuming no other expenses related to the business were incurred, what amount of maintenance, utilities, and depreciation is deductible by Sophia under the regular method? a. So b. $3,500. O c. $4,500. O d. $2,500. Oe. None of the above. QUESTION 17 Patricia owns and manages her single-member LLC, which provides a wide variety of financial services to her clients. She is married and will file a joint tax retum with her spouse, Kevin. Her LLC reports $300,000 of net income, W-2 wages of $120,000, and assets with an unadjusted basis of $75,000. Their taxable income before the QBI deduction is $450,000 (this is also their modified taxable income). What is their QBI deduction for 2020? O aso-, O b. $57,000. O c. None of the above. O d. $70,000. Oe. $60,000