Question 2: • Jana is a single taxpayer who will take the $12,950 standard deduction in 2022. Jana is the owner of Put Y

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Question 2: • Jana is a single taxpayer who will take the
$12,950 standard deduction in 2022. Jana is the owner of Put Your
Best Foot Forward, a boutique shoe store in Elite Suburb, Il. Jana
operates her store as an S corporation (she is the sole
shareholder). In 2022 her qualified business income from Put Your
Best Foot Forward was $400,000. She paid $150,000 in w-2 wages
(note: these wages are included in the $400,000 of qualified
business income). In addition, the unadjusted basis in assets was
$1,600,000 (this amount includes the building in which the store is
located as well as the store fixtures). Jana had interest income of
$25,000 (in addition to her earnings from her store). Determine
Jana’s taxable income in 2022.
• Assume that instead of owning and operating Put Your Best Foot
Forward, Jana was a dentist earning $400,000. She paid w-2 wages of
$150,000 and the unadjusted basis of her office furnishings and
equipment was $1,600,000. She will continue to take the $12,950
standard deduction rather than itemize. Under this scenario, what
is Jana’s taxable income in 2022?