Please read carefully:

Problem 15-28 (LO. 3, 4)

Diego and Molly are married and will file a joint return. Diego earns $300,000 from his single member LLC (a law firm), which the tax law treats as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm owns no significant property. Molly is employed as a tax manager by a local CPA firm. Diego and Mollys modified taxable income is $381,400 (this also equals taxable income before the QBI deduction).

A. What is their tentative QBI based on the W2 Wages/Capital Investment Limit? $______

B. Determine their allowable QBI deduction. $______