1. Marge, who is married, operates Shapes: A Gym for Women.

1. Assume Marge runs Shapes as a sole proprietorship. The business generated gross income for tax purposes of $564,000 and had valid, deductible business expenses of $370,000 in 2020. What is Marges 2020 self-employment tax liability?
2. Same facts as Part A. What is Marges 2020 federal income tax deduction for self-employment tax?
3. Assume that, instead of running Shapes as a sole proprietorship, Marge is an employee of the Shapes Company. (Marge does not own any part of the Shapes Company; she is simply an employee of the company.) $200,000 is her salary for 2020. How much should the Shapes Company have withheld from her pay, in total, for FICA taxes?