Compute taxable income from her bookstore activity

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Reference no: EM131258367

In 2016, Wilma Way's sole proprietorship, WW Bookstore, generated $120,000 net profit. In additon, 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 interst income. a) which of these income items are subject to self-employment tax? b) comput Wilma's 2016 self-employment tax. c) Compute Wilma's 2016 taxable income from her bookstore activity.

Reference no: EM131258367

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