Wilhelmina Operates a Daycare Center in Her Home as a Sole

Essay

Wilhelmina operates a daycare center in her home as a sole proprietorship. She has gross revenues of $15,000 and the following expenses:
Cost of food $1,200; allocated costs of using the home $900; allowable depreciation $500; reasonable salary for her 16 year old daughter for after-school help $3,000.
a. Determine Wilhelmina's net income from the sole proprietorship in 2018.
b. Determine Wilhelmina's total of self-employment and income taxes on this activity if her marginal tax rate is 24 percent.