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James Jones is the owner of a small retail business operated as a sole proprietorship. During 2019, his business recorded the following items of income

James Jones is the owner of a small retail business operated as a sole proprietorship. During 2019, his business recorded the following items of income and expense:

Revenue from inventory sales $147,000

Cost of goods sold33,500

Business license tax2,400

Rent on retail space42,000

Supplies15,000

Wages paid to employees22,000

Payroll taxes1,700

Utilities3,600

  1. Required:Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2019 Form 1040.
  2. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2019 Schedule SE, Form 1040.
  3. 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 2019 QBI deduction, before any overall taxable income limitation.

I can't figure out number 3 I have 1 & 2.

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