The following events occur for the underwood corporation during 2021 and 2022, its first two years of operations. june 12, 2021 provide services to customers on account for $30,800. september 17, 2021 receive $16,500 from customers on account. december 31, 2021 estimate that 45% of accounts receivable at the end of the year will not be received. march 4, 2022 provide services to customers on account for $45,800. may 20, 2022 receive $10,000 from customers for services provided in 2021. july 2, 2022 write off the remaining amounts owed from services provided in 2021. october 19, 2022 receive $36,500 from customers for services provided in 2022. december 31, 2022 estimate that 45% of accounts receivable at the end of the year will not be received.

James jones is the owner of a small retail business operated as a sole proprietorship. during 2017, his business recorded the following items of income and expense: revenue from inventory sales $ 147,000 cost of goods sold 33,500 business license tax 2,400 rent on retail space 42,000 supplies 15,000 wages paid to employees 22,000 payroll taxes 1,700 utilities 3,600 compute taxable income attributable to the sole proprietorship by completing schedule c to be included in james’s 2017 form 1040. compute self-employment tax payable on the earnings of james’s sole proprietorship by completing a 2017 schedule se, form 1040. assume your answers to parts a and b are the same for 2018. further assume that james's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. calculate james's 2018 section 199a deduction.