Question: In 2 0 2 3 , Sheryl and Aaron, each single, both generate sole proprietor income of $ 3 7 5 , 0 0 0

In 2023, Sheryl and Aaron, each single, both generate sole proprietor income of $375,000. Sheryl's income is generated from a wholesale business whereas Aaron's is earned from his law practice. Neither has any employees or qualified assets. Both claim the standard deduction and have other income equal to the standard deduction amount. (So, modified taxable income equals the income generated from their activities as sole proprietors.) Which of the following statements is correct?

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