Peggy's sole proprietorship consists of a bakery and retail food sales. The bakery's DPGR is $700,000, but after CGS, direct expenses, and a ratable portion of indirect expenses are deducted, QPAI is $100,000. W-2 wages related to DPGR are significant. The retail food sales have a loss of $1 million. If Peggy files a joint return and her modified AGI is $119,500, what is her allowable DPAD, if any, for 2011?
A) None.
B) $6,000.
C) $9,000.
D) $10,755.
E) Some other amount.
Correct Answer:
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