Jake and Mason Plumley age-66 and -56, are a married couple who had the following relevant transactions for 2020:

Adjusted gross income excluding the following with no salaries $ 60,300

SMALL BUSINESS OPERATIONS (Hardware Sales)

Gross income $278,100

Supplies and products for sale 80,950

Salaries and wages paid, including payroll taxes 54,250

Business interest expense 1,200

Business property taxes 650

Insurance 260

Other business expense 2,845

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* Question (Answer in Excel spreadsheet)

a. Self-employment tax.

b. Qualified business income deduction. One half of the self-employment tax is deducted in arriving at QBI.

c. Net effect on taxable income. One half of the self-employment tax is deducted in arriving at taxable income.