1.Jimmy received $110,000 of wage income and $40,000 of self-employment income in 2019. What amount of self-employment taxes related to Social Security is Jimmy required to pay on his self-employment income? Hint: the maximum base for Social Security taxes is $132,900 in 2019. Feel free to round your answer to the nearest whole dollar.

2.Payal has a net unrecaptured 1231 loss of $4,000 from the 2018 tax year. In 2019, she sold an asset and realized a net 1231 gain of $7,000. What is Payals 2019 gain that she will report on her tax return and what is its character?

3.Niloufar operates a local accounting firm on the accrual method. At January 1, Niloufar's firm had an allowance for doubtful accounts balance of $10,000. For financial reporting purposes, her firm recorded bad debt expense of $15,000 during the year. At December 31, the balance of doubtful accounts was $18,000. What is the firms tax deduction for bad debt expense this year? Hint: Use a t-account for the allowance for doubtful accounts to determine the amount of bad debt written off.