The CEO of Buffalo Bob’s Chicken Wings is considering selling his firm. She estimates that the firm’s current year equity cash flow is $4 million. She asks her CFO to create several estimates of the firm’s value. Scenario 1 is to be based on a 4% annual growth rate; the second scenario is to reflect a 6% annual growth rate for the next five years and 3% thereafter. The firm’s cost of equity for both scenarios is estimated to be 10%.What is the value of the firm under Scenario 1 and Scenario 2?

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.