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 Description Engagement 11 Engagement 2 (1) Gross income before new work engagement $ 120,000 $ (2) Income from engagement 7,000 120,000 5,000 (3) Additional for AGI deduction (3,000) (4) Adjusted gross income $ 124,000 S 125,000 (5) Greater of itemized deductions or standard deduction 12.200 12,200 (6) Deduction for QBI (1,000) ces Taxable income. s 111 800 S 111.800