Which of these income items are subject to self- employment

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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 199 A 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.

Reference no: EM132321839

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