Peter samuels owns and manages his single-member llc that provides a wide variety of financial services to his clients. he is married and will file a joint tax return with his spouse, amy. his llc reports $300,000 of qualified business income, w–2 wages of $120,000, with qualified property with an unadjusted basis of $75,000. their taxable income before the qbi deduction is $285,000 (this is also their modified taxable income). determine their qbi deduction for 2019.

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805