Please show work step by step. Please answer both parts because they relate to the same question.

Richard owns his own carpentry business as a sole proprietor and files a Schedule C with his individual income tax return. He employs three people and offers health insurance coverage for himself and the three employees. The total cost for the employees is $8,670, and $12,700 for himself and his family. What are the tax effects of these expenses if his self-employment income before any health insurance deduction is $107,000? Health insurance deduction on Schedule C $ Health insurance deduction on Schedule 1, Part II $ 12700 12700