QUESTION 3 Leonard and Penny own an accounting firm as a sole proprietorship. They are cash basis, calendar-year taxpayers and file a joint return. For the year, they had the following information: Ordinary income from sole proprietorship $425,000 Taxable income $500,000 Modified taxable income $415,000 W-2 wages paid to employees $90,000 Qualified property basis $30,000 SE tax deduction $13,658 SE health insurance deduction $22,000 Qualified retirement plan contributions $18,000 What is their QBI deduction? $45,000 $77,868 $0 $74,268