The company FPA has the following income, expense, and loss items for the current year.

Sales $850,000 Tax-exempt interest $40,000 Long-term capital gain $85,000 Short-term capital loss $35,000 Passive activity loss $20,000 Cost of goods sold $480,000 Depreciation $40,000 Section 179 expense $50,000 Other operating expenses $200,000 Net operating loss (from previous year) $24,000

Prepare a calculation of taxable income for a Sole proprietorship and indicate the tax form(s) to report the business activity.