1) In 2013, Regina, a sole proprietor, had the following income and expenses from her home jewelry business. Regina is also employed as an office assistant at the local business:

W-2 wages from employer $28,000

Proceeds from jewelry sales $15,000

Supplies for jewelry - $5,000

Charitable contributions to church $3,000

Questions:

a. What income or loss should be reported on schedule C

b. What is Regina's AGI

2) Beau earned $25,000 of net earnings from a tax preparation business that he runs during tax season. He also earned a salary of $95,000 from his full-time job. How much self employment tax must he pay for 2013 ? (Round calculations to the nearest dollar).