James Jones is the owner of a small retail business operated as a sole proprietorship. During 2017, his business recorded the following items of income and expense: Revenue from inventory sales Cost of goods sold Business lieense tax Rent on retail space Supplies Mages paid to employees Payroll taxes Utilities $147,000 33, 500 2,400 42,000 15,000 22,000 1,700 3,600 a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040. b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040.

James Jones is the owner of a small retail business operated as a sole proprietorship. During 2017, his business recorded the following items of income and expense: Revenue from inventory sales Cost of goods sold Business lieense tax Rent on retail space Supplies Mages paid to employees Payroll taxes Utilities $147,000 33, 500 2,400 42,000 15,000 22,000 1,700 3,600 a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040. b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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