James Jones is the owner of a small retail business operated as a sole proprietorship....
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James Jones is the owner of a small retail business operated as a sole proprietorship. During 2019, his business recorded the following items of income and expense Revenue from Inventory sales Cost of goods sold Business license tax Rent on retail space Supplies Wages paid to employees Payroll taxes Utilities $147.000 33,500 2,400 42.000 15,000 22.000 1,700 3,600 Required: a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2019 Form 1040 b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2019 Schedule SE, Form 1040 C. Assume that James's business is not a service business, and that it has $155.000 unadjusted basis in tangible depreciable property Calculate James's 2019 Q81 deduction, before any overall taxable income limitation
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