Question: In 2015 Wilma Way s sole proprietorship WW Bookstore generated 120 000

In 2015, Wilma Way’s sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 gain on the sale of business furniture and shelving, all of which was recaptured as ordinary income. The business checking account earned $960 interest income.
a. Which of these income items are subject to self-employment tax?
b. Compute Wilma’s 2015 self-employment tax.
c. Compute Wilma’s 2015 taxable income from her bookstore activity.

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