Q. Solve the problems and please no copy from the textbook.

A.

B.

James Jones is the owner of a small retail business operated as a sole proprietorship During 2008, his business recorded the following items of income and expense 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 a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2008 Form 1040 b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2008 Schedule SE, Form 1040