45. Comprehensive Problem for Chapters 4 and 5. Martin, the sole proprietor of a consulting business, has gross receipts of $45,000 in 2011.

Expenses paid by his business are Advertising $ 500 Supplies 2,900 Taxes and licenses 500 Travel (other than meals) 600 Meals and entertainment 400 Health insurance premiums (for Martin) 1,400 Individual retirement account contribution 2,500 During the year, Martin drives his car a total of 15,000 miles (700 business miles and 550 personal miles per month). He paid $100 for businessrelated parking and tolls. He paid $120 in fines for speeding tickets when he was late for appointments with clients. Martin’s office is located in his home. His office occupies 500 of the 2,000 square feet in his home. His total (unallocated) expenses for his home are Mortgage interest $6,000 Property taxes 1,700 Insurance 700 Repairs and maintenance 300 Utilities 1,600 Depreciation for the business portion of his home is $1,364.

a. What is Martin’s net income (loss) from his business?

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

c. Based on this information, are there any other deductions that Martin can claim on his individual tax return other than those reported on his Schedule C?