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Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,562 in self-employment tax on her salon income, with $1,281 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.

Interest income $ 12,960
Salon sales and revenue 87,460
Salaries paid to beauticians 45,820
Beauty salon supplies 23,510
Alimony paid to her ex-husband, Rocky 6,550
Rental revenue from apartment building 33,200
Depreciation on apartment building 13,450
Real estate taxes paid on apartment building 11,540
Real estate taxes paid on personal residence 6,560
Contributions to charity 4,600

b-2. Complete page 1 (through line 11) of Form 1040 for Betty.

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