In 2018, 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 2018 self-employment tax.

c. Compute Wilma’s allowable Section 199A deduction, assuming $43,000 of W-2 wages and $90,000 unadjusted basis of tangible depreciable property.

d. Compute Wilma’s 2018 taxable income from her bookstore activity.