Please don't give image format and don't use chatgpt X Corporation, a cash basis taxpayer, has taxable income of $500,000for the current year. Tern elected $25,000 of § 179 expense. It also hada related-party loss of $20,000 and a realized (not recognized) gain froman involuntary conversion of $75,000. It paid Federal income tax of$150,000 and paid a nondeductible fine of $10,000. Tern's current E & Pis:a $415,000.b $350,000.$340,000.d $320,000.In 2021, Sam and Betty, each single, both generate sole proprietorincome of $240,000. Sam's income is generated from a wholesalebusiness whereas Betty's is earned from her law practice. Neither hasany employees or qualified assets. Both claim the standard deductionand have other income equal to the standard deduction amount.a Both Sam and Betty will have a QBI deduction of $48,000.b Sam can obtain a QBI deduction, but Betty cannot because of the taxable incomelevel and law practice is a specified service business.Neither Sam nor Betty will generate a QBI deduction due to their taxable incomelevels.d None of these.

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X Corporation, a cash basis taxpayer, has taxable income of $500,000 for the current year. Tern elected $25,000 of § 179 expense. It also had a related-party loss of $20,000 and a realized (not recognized) gain from an involuntary conversion of $75,000. It paid Federal income tax of $150,000 and paid a nondeductible fine of $10,000. Tern's current E & P is: $415, 000. b$350, 000. $340, 000. d $320, 000.