Patricia Is a 25% Owner and an Active Member in the PBK

Patricia is a 25% owner and an active member in the PBK LLC, which operates a qualified trade or business for purposes of the deduction under § 199A. Patricia's distributive share of qualified income from the LLC is $250,000 for the year (the LLC's income is $1,000,000) . Her share of the LLC's W-2 wages is $40,000, and she received a guaranteed payment for services of $30,000. Her share of the LLC's unadjusted basis immediately after acquisition of qualified property is $1,200,000. How much is her qualified business income for this separate trade or business?

A) $20,000.
B) $35,000.
C) $40,000.
D) $47,500.
E) $50,000.