Robert, the sole proprietor of a consulting business, has gross receipts of $600,000 in 2015. Expenses paid by his business are Robert purchased a used car for his business on May 15 for $28,000. He also purchased $50,000 of new 5-year equipment and $238,000 of used 7-year fixtures on August 1. Robert drove the car 10,000 miles (8,000 for business and 2,000 personal miles). He paid $200 for business-related parking and tolls. He also paid $1,000 for insurance and $1,200 for gasoline and oil for the new car. He would like to maximize his deductions. Assume that the 2014 Section 179 and bonus depreciation provisions were extended into 2015.

a. What is Robert's net income (loss) from his business?

b. How much self-employment tax must Robert pay?

c. If this is Robert's only source of income, what is his adjusted gross income?