Wally is a single taxpayer who earns $50,000 of Qualified Business Income (QBI) from his sole proprietorship as well as some non-QBI interest income on corporate bonds. Wally does not itemize, and instead claims the standard deduction. After taking his standard deduction, his taxable income without taking the QBI deduction into account is $45,000. What will his taxable income be after taking any QBI deduction he is entitled to?

$35,000.

$36,000.

$40,000.

$45,000.