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 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 Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040. Assume your answers to parts a and b are the same for 2018. Further 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 2018 Section 199A deduction.

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 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 Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040. Assume your answers to parts a and b are the same for 2018. Further 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 2018 Section 199A deduction.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 12P

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