Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

image text in transcribed
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 Coat of goods sold Business license tax Rent on retail space Supplies Wages paid to employees Payroll taxes Utilities $147,000 33,500 2,400 42,000 15,000 22,000 1,700 3.600 1040. Required: a. Compute taxable income attributable to the sole proprietorship by completing Schedule to be included in James's 2019 Form b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2019 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 2019 OBI deduction, before any overall taxable income limitation Complete this question by entering your answers in the tabs below. Schedule Schedule SE Parta Part b Part Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2019 Schedule SE, Form 1040 (Round your intermec answers to the nearest whole dollar value. Input all the values as positive numbers.) Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. ta Netfarm profesor poss) from Schedule Fine 34 and farm partnerships, Schedule K-1 (Form 1065), box 14 code A you receivedoci security retirement or disability benefits, enter the amount of Conservation Reserve Program payment included on

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

9781292016924

Students also viewed these Accounting questions