Keiji Jones is the owner of a small retail business operated as a sole proprietorship. During 2021, 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 |
Required:
- Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in Keijis 2021 Form 1040.
- Compute self-employment tax payable on the earnings of Keijis sole proprietorship by completing a 2021 Schedule SE, Form 1040.
please show pictures of schedule C and SE
(Sole Propriotorship) Go to ww.irs gowschedulec for instructions and the latest information. Department of the Treasury = internal Revenus service (99) Heventa service (99) Attach to Form 1040,10405R,1040NR, of 1041 ; partnerships generally must file Form 1065 . 2021 Attachment Sequence No. 09 Secial security number (SSN) E Enter code from instructions D Employer iD number (EIN) (see instructioni) E Bushness address (including suite or room no) Ciy, sown or post office, state, and ZiP code F Accounting method (1) Cash (2) Acerual (3) Other (specify) 9. Did you "inderialy participate" in the operation of this business dunng 20217 if "No," see instructions for limt on losses. in. if you started or acqured this butiness during 2021 , check here 1 Did you make any payments in 2021 that would require you to fie Form(s) 1099 (eee instrustions) 2. If "ree," did you or wil you file required forms 1000 ? Yes No Part I Incerne 1 Crose receipls or sabs See instructions for line 1 and check the bor if this incone was teported to you on Form W.2 and the "stahilory employee" foos on that form was checked. 2. Rebums and aliowances 3. Sublact line 2 from lre 1 4 Cost of goode sold (from lina 42) 5 Gross proft. Sublact ine 4 from ine 3 6 Cther income, including federat and stale gasoline or fuel tax credt or refund (see insiructions) 7 Cross income Add lines 5 and 6 Part II Expenses Yes No Yos No 8) Advertang 1) Csr and truck empenses isee intructions) Enter expens Enter expenses for business use of your home only on line 30. 18 ctice expense (bee instructlons) 19 Pension and probt-sharing plans 20 Rent or loase (kee instructioni): \begin{tabular}{|r|r|} \hline 18 & \\ \hline 19 & \\ \hline \end{tabular} Self-Employment Tax (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of person with soif-employment income (as shown on Form 1040, 1040 . SR, or 1040NR) Keyj Jones: Go to Www.irs.govischeduleSE for instructions and the latest information. - Atach to Form 1040,1040SR, or 1040NR. Social secunty number of person with self-empleyment income OMB No. 15450074 2021 Attachment Sequence No. 17 PartI Self-Employment Tax Note: If your only income subjoct to self-employment tax is church employee inceme, see instructions for how to report your income and the definition of church employes income. A If you are a minister, member of a religious order, or Christion \$cience practioner and you filed Form 4361 , but you had $400 or more of other net earnings from self-employment, check here and continue weh Part Skip lines 1a and 16 if you use the farm optional method in Part il. See instructions ta Not tarm proft or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Farm 1065), box 14, code A b If you roceived social secunty retrement or disabaty benefits, ogter the amount of Conservaton Reserve Program payments induded onSchedule F, lne 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH Skip line 2 if you use the nontarn optonal method in Part II. See instructions. 2 Net proft or (loso) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See insiructions for other incorme to report or if you are a minister or member of a religious order J Combine ines 1a, 1b, and 2 4a if ine 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount trom line 3 Note: if ine 4 a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b if you elect one or both of the optional methods, enter tho total of lines 15 and 17 here c Combine ines 4a and 46 . If less than $400, stop; you don't owe self-employment tax Exception: If less than 5400 and you had church employee income, enter -0 - and continue 5 Enter your church employee income from Form W-2. See instructions for definsion of church employee income b Multiply line 5 by 9235%(0,9235) if iess than $100, enter -0 - 6 Add lines 40 and 50 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 5a 1a 1b 0
