James Jones is the owner of a small retail business operated as a sole proprietorship. During 2018, his business recorded the following items of income and expense.

Revenue from inventory sales $ 147,000

Cost of goods sold 33,500

Business license tax 2,400

Rent on retail space 42,000

Supplies 15,000

Wages paid to employees 22,000

Payroll taxes 1,700

Utilities 3,600

A.Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in Jamess 2018 Form 1040.

B.Compute self-employment tax payable on the earnings of Jamess sole proprietorship by completing a 2018 Schedule SE, Form 1040.

C.Assume that James's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate James's 2018 QBI deduction, before any overall taxable income limitation.