• 3. Jamie is self-employed and also has wages from another employer. During 2007, Jamie\'s social security and Medicare wages were $68,500. Jamie\'s net profit on Schedule C shows $77,000. Calculate the self-employment tax due for Jamie in 2007. Also determine the amount of Jamie\'s deduction for self-employment taxes, to be shown on the Form 1040. 

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• 4. Fred is a cash-basis farmer. During the year, he sold crops that he had raised the previous year in the amount of $120,000. Fred also received crop insurance proceeds this year due to flooding. The crop insurance proceeds were $100,000. Fred also borrowed $30,000 from the Commodity Credit Corporation, pledging grain (in his inventory) as collateral. Fred has not made an election to treat CCC loans as income. Fred wishes to keep his tax bill as low as possible. Compute his gross income from farming, and give a detailed explanation for the treatment of the various items. 

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• 5. Suzanne was a participant in her employer\'s defined contribution retirement plan until this year, when she was separated from service. Suzanne had a balance in her account of $8,450 when she left, and she had four years of service to her credit. Compute the amount of Suzanne\'s vested benefit under the two most common vesting schedules for qualified plans.