James Jones is the owner of a small retail business operated as a sole proprietorship. During 2017, his business recorded the following items of income and expense.

Revenue from inventory sales ...................................................... $147,000

Cost of goods sold ..........................................................................     33,500

Business license tax ........................................................................      2,400

Rent on retail space .......................................................................     42,000

Supplies ...........................................................................................     15,000

Wages paid to employees ..............................................................    22,000

Payroll taxes .....................................................................................      1,700

Utilities ..............................................................................................      3,600

a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040.

b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040.

c. Assume your answers to parts a and b are the same for 2018. Further assume that James's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. Calculate James's 2018 Section 199A deduction.