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. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. (1) (2) Answer is complete but not entirely correct. Description Engagement Engagement 2 Gross income before new work engagement $ 120,000 $ 120,000 Income from engagement 7,000 5,000 Additional for AGI deduction 3,000 Adjusted gross income $ 124,000 $ 125,000 Greater of itemized deductions or standard deduction 12,200 12,200 Deduction for QBI 0 1,000 Taxable income 111,800 111,800 (3) 4 (5) (6)