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Business, 21.04.2020 04:51 Beast3dgar

Sarah owns and operates a retail sporting goods business as a sole proprietor. Her store is located on the ground floor of a two-story building that she owns. Based on the following information regarding 2017, compute her net self-employment income (for SE tax purposes) to be put onto Schedule C for that year.
Gross profit from sporting goods business = $100,000
Rental income from upper level (45%) of building = 20,000
Building depreciation expense = 10,000
Utilities for ground floor (Tenant pays own utilities.) = 4,500
Depreciation on vehicles used in business = 3,000
Gain on sale of van used 100% in business = 2,000
Contributions to her Keogh retirement plan = 5,500
Sarah's health insurance premiums = 4,000
Mortgage interest on building = 10,000
Other expenses of running her sporting goods business = 11,500
A. $70,000
B. $64,500
C. $66,000
D. $73,500

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