Unicorn associates is an S corporation for federal tax purposes owned equally by Susan and Jenny. Unicorn, Susan, and Jenny are all calendar year cash method taxpayers. Susan and Jenny each file "single" returns.

Unicorn sells hand$-$crafted furnishings and other home decor items it acquires from unrelated artisans. Uniform also provides interior decorating consultation services to customers purchasing significant quantities of goods. Neither Susan nor Jenny is employed by Unicorn. Neither has net capital gain, qualified REIT dividends, or qualified PTP income.

In $2020,$ Unicorn's sales were $$14$ million and it made an additional $$1$ million from its decorating consultation services. Its costs of goods sold was $$10$ million, it paid $$500,000$ in wages to its employees, and had $$2\mathrm{.}5$ million in other deductible expenses $($inclusive of both the furniture sales and consulting activities$).$ Unicorn has no qualified property.

Questions:

what is the best portfolio to research whether Susan and Jenny are eligible to take $199$A deduction in relation to the net income that flows through to them from Unicorn in $2020?$

a$)$ portfolio $537-1$st

b$)$ portfolio $503-4$th

c$)$ portfolio $731-3$rd

d$)$ portfolio $732-1$st

If they are eligible, how much would each Susan and jenny be permmited to deduct?

a$)$ each owner would be permitted to deduct $20\%$ of Unicorn's qualified business income, which is $$200,000($half of $$400,000)$

b$)$ each owner would be permitted to deduct total wages paid, which is $$500,00$

c$)$ each owner would be allocated half of the wages, which is $$125,000($half of $$250,000)$

d$)$ each owner would be permitted to deduct $20\%$ of Unicorns qualified business income, which is $$100,000($half of $$200,000)$