Through November, Cameron has received gross income of $120,000. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,000 of revenue at a cost to Cameron of $3,000, which is deductible for AGI. In contrast, engagement 2 will generate $5,000 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. Answer is complete but not entirely correct. Description Engagement 1 Engagement 2 (1) Gross income before new work engagement $ 120,000 $ 120,000 (2) Income from engagement 7,000 5,000 (3) Additional for AGI deduction 3,000 0 (4) Adjusted gross income $ 124,000 $ 125,000 (5) Greater of itemized deductions or standard deduction 12,200 12,200 (6) Deduction for QBI 1,000 Taxable income $ 1,118,000 $ 111,800 x Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai's employer called and offered him $500 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $400. If Nitai works over the weekend, he will have to pay the $400 to have his car repaired, but he will earn $500. Assume Nitai's marginal tax rate is 12 percent rate. Required: a-1. Strictly considering tax factors, should Nitai work or repair his car if the $400 he must pay to have his car fixed is not deductible? a-2. Given the answer in a-1 above, by how much is Nitai better or worse off? b-1. Strictly considering tax factors, should Nitai work or repair his car if the $400 he must pay to have his car fixed is deductible for AGI? b-2. Given the answer in b-1 above, by how much is Nitai better or worse off? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 Strictly considering tax factors, should Nitai work or repair his car if the $400 he must pay to have his car fixed is not deductible? < Required A1 Required A2 > Required A1 Required A2 Required B1 Required B2 Given the answer in a-1 above, by how much is Nitai better or worse off? < Required A1 Required B1 > Required A1 Required A2 Required B1 Required B2 Required B1 Strictly considering tax factors, should Nitai work or repair his car if the $400 he must pay to have his car fixed is deductible for AGI? < Required A2 Required B2 > Required A1 Required A2 Required B1 Required B2 Given the answer in b-1 above, by how much is Nitai better or worse off? < Required B1 Required B2 >