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Problem 10-11 (Algo) (LO 10-1, 10-2) In 2020, Wilma Way's sole proprietorship, WW Bookstore, generated $90,000 net profit. In addition, Wilma recognized a $4,000 gain
Problem 10-11 (Algo) (LO 10-1, 10-2) In 2020, Wilma Way's sole proprietorship, WW Bookstore, generated $90,000 net profit. In addition, Wilma recognized a $4,000 gain on the sale of business furniture and shelving, all of which was recaptured as ordinary income. The business checking account earned $1,650 interest income. Required: a. Which of these income items are subject to self-employment tax? b. Compute Wilma's 2020 self-employment tax. c. Compute Wilma's allowable QBi deduction, assuming $28,000 of W-2 wages and $350,000 unadjusted basis of tangible depreciable property. Further assume the overall taxable income limitation on QBI does not apply. d. Compute Wilma's 2020 taxable income from her bookstore activity. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Compute Wilma's 2020 self-employment tax. (Round your answer to the nearest whole dollar amount.) Self-employment tax Required A Required B Required C Required D Compute Wilma's allowable QBI deduction, assuming $43,000 of W-2 wages and $90,000 unadjusted basis of tangible depreciable property. Further assume the overall taxable income limitation on QBI does not apply. Wilma's allowable QBI deduction Required A Required B Required Required D Compute Wilma's 2020 taxable income from her bookstore activity. (Round your intermediate calculations to the nearest whole dollar amount.) Taxable income from bookstore activity
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