Bamboo Associates is an S corporation for federal tax purposes owned equally by Mike and Jack. Bamboo, Mike, and Jack ar

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Bamboo Associates is an S corporation for federal tax purposes
owned equally by Mike and Jack. Bamboo, Mike, and Jack are all
calendar year cash method taxpayers. Mike and Jack each file
"Single" returns. Bamboo sells hand-crafted furnishings and other
home décor items it acquires from unrelated artisans. Bamboo also
provides interior decorating consultation services to customers
purchasing significant quantities of goods. Neither Mike nor Jack
are employed by Bamboo. Each of Mike and Jack have taxable income
of $100,000 from sources other than Bamboo. Neither has net capital
gain, qualified REIT dividends or qualified PTP income. In 2018,
Bamboo's sales were $13 million and it made an additional $2
million from its decorating consultation services. Its cost of
goods sold was $9 million, it paid $500,000 in wages to its
employees, and had $3.5 million in other deductible expenses
(inclusive of both the furniture sales and consulting activities).
Bamboo has no qualified property.
Question: Are Mike and Jack eligible to take a §199A deduction
in relation to the net income that flows through to them from
Bamboo in 2018? If not, why are they ineligible? If they are
eligible, how much would each of Mike and Jack be permitted to
deduct?