Sally is the sole proprietor of Excellence, a nail salon. Her revenue comes from two sources: services (manicures and pedicures) and the sale of beauty products. Sally has three employees whose compensation consists of a weekly salary and a 40% commission on the services they provide to customers. Sally uses the hybrid method of accounting: accrual for inventory and cash for everything else. For the current year she gives you the following information:

Revenue from services		$141,650
Revenue from sale of products		36,240
Gross salaries paid (including commissions)		63,000
Withholdings from employees' paychecks:
Social security taxes	$ 4,820
Federal income taxes	15,200
State income taxes	4,200
Social security taxes paid		4,820
Other payroll taxes paid		375
Advertising		1,200
Rent for salon space		12,100
Utilities		1,600
Phone		570
Postage		220
Accounting fees paid		1,200
Legal fees paid		625
Beginning inventory of products	$ 1,756
Ending inventory of products	1,469
Products purchased	18,345

A. Determine the income Sally must report from Excellence.

B. Determine the self-employment tax Sally must pay based on her income from Excellence.