Final answer:
Based on the provided tax brackets and the conditions stated in the question, the logical value of Renee's QPAI that fits the scenario and calculations is $7,000.
Step-by-step explanation:
The question asks about the Qualified Production Activities Income (QPAI), so we need to calculate which option given makes sense based on the provided information. Since Renee's modified AGI of $75,000 exceeds her QPAI and the $900 deduction is less than 50, we can interpret this as the QPAI being less than $50,000. Reviewing the provided tax brackets and given QPAI options, the QPAI that is less than $50,000 and when added to $7,500 exceeds $75,000 (which aligns with her AGI) is the option of $7,000. This can be inferred because $7,500 + 25% of the amount over $50,000 would not exceed $75,000 until the amount over is at least $70,000 (which is her total AGI minus the base $7,500). Therefore, $7,000 is the logical value of QPAI that fits the scenario.
Renee's modified AGI of $75,000 exceeds QPAI (Qualified Business Income) and the $900 deduction is less than $50.
We can set up an equation to find the value of QPAI:
$75,000 - QPAI = $900
Solve for QPAI by subtracting $75,000 from both sides of the equation:
QPAI = $74,100
Therefore, the value of QPAI is $74,100.