James Jones is the owner of a small retail business operated as a sole proprietorship. During 2013, his business recorded the following items of income and expense:

  

      

    

a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James’s 2013 Form 1040.  

b. Compute self-employment tax payable on the earnings of James’s sole proprietorship by completing a 2013 Schedule SE, Form 1040.

Transcribed Image Text:

Revenue from inventory sales Cost of goods sold Business license tax Rent on retail space Supplies Wages paid to employees Payroll taxes Utilities $147,000 33,500 2,400 42,000 15,000 22,000 1,700 3,600 Revenue from inventory sales Cost of goods sold Business license tax Rent on retail space Supplies Wages paid to employees Payroll taxes Utilities $147,000 33,500 2,400 42,000 15,000 22,000 1,700 3,600

Answer rating: 100% (QA)

a Calculation of taxable income Particulars Amount Revenue 147000 Less Cost of sales 33500 op... View the full answer