3) Sam Dichter is a self-employed individual who owns his own tax practice. His business income and expenses are as follows:

Income Professional Fees Earned $2,654,137

Expenses Insurance $82,642

Utilities $24,056

Depreciation on office equipment $49,010

Depreciation on furniture $24,560

Depreciation on computer equipment $31,049

Salaries $775,771

Interest on bank loan $5,826

Supplies $69,067

Bad Debts $6,054

Travel (1,663 miles driven) - b ?

Taxes & Licenses $47,009

Meals and Entertainment - a $48,620

Bank Service Charges $3,716

Office Expenses $145,025

Rent on office space $342,006

Advertising $139,446

Legal Fees $136,740

Repairs and Maintenance $28,990

a - Meals and Entertainment are only 50% deductible

b - Mileage is deductible at a rate of 62.5 cents ($0.625) per mile Required:

Calculate Sams taxable business profit and his self-employment tax liability. You can use a separate spreadsheet for the calculations and need not submit the Schedule C and Schedule SE.