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Through November, Cameron has received gross income of $ 1 2 4 , 5 0 0 . For December, Cameron is considering whether to accept

Through November, Cameron has received gross income of $124,500. For December, Cameron is
considering whether to accept one more work engagement for the year. Engagement 1 will
generate $8,170 of revenue at a cost to Cameron of $3,450, which is deductible for AGI. In
contrast, engagement 2 will generate $5,900 of qualified business income (QBI), which is eligible
for the 20 percent QBI deduction. Cameron files as a single taxpayer.
Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he
chooses engagement 2. Assume he has no itemized deductions.
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