I'm trying to fill out an IRS form 1040 Schedule SE - Self Employment Tax - using the information below.

Wagesconsist of $25,000 paid to one employee and $15,000 to another

Depreciation expense; Jones owns a fishing boat, The Jolly Roger, which he purchased for $850,000. The depreciation on the income statement is book depreciation and will differ from what is actually used on Line 13 Depreciation of form 1040 Schedule C.

The boat is depreciated using the Modified Accelerated Cost Recovery System (MACRS), half year convention, is in its 4th year of service and the 10-year recovery period is used.

Utilize Publication 946 How to Depreciate Property to calculate the correct depreciation amount to enter on the 1040 Schedule C. Locate Table A1 in the Appendix to calculate the tax-deductible depreciation.

Interest expenseis interest paid on the loan for the boat

Insurance paymentswere made to cover liability for guests and for the boat

Payroll taxes; Federal Insurance Contributions Act (FICA); Social Security and Medicare payments made on the behalf of employees

Federal Insurance Contributions Act (FUTA) made on behalf of employees

Travelwas purely for business purposes

Parking finesare tickets Jones received for parking illegally

Lease expensewas paid to Honda Motors for his mother's car lease, who is not involved in the business in any way

Davy Jones' Nautical Tours 2016 Income Statement

Revenue

$ 400,950.00

Wages

$ 40,000.00

FICA

$ 3,060.00

FUTA

$ 85.00

Depreciation

$ 85,000.00

Interest

$ 43,900.00

Advertising

$ 6,350.00

Supplies

$ 23,795.00

Legal fees

$ 6,940.00

Insurance

$ 26,700.00

Boat slip rental

$ 33,010.00

Travel

$ 6,250.00

Office expense

$ 7,940.00

Parking fines

$ 1,350.00

Lease expense

$ 3,650.00

Net Profit

$ 112,920.00