Richard Norton is required to pay a self-employment tax based on the net profits of the farm business. Assume that Richard had a net profit of $105,000 from the farm business for year 3 and $10,000 of Section 1231 gain.

Complete Section A of the Form 1040, Schedule SE, for year 3 below by entering the appropriate values in the shaded cells. Round values to the nearest dollar. If a cell should be left empty, enter a zero.

wiley software

sect A:SE

line 4) multiply by .9235 if less than $400...but line 3 is 105000 so y do we multiply by 0.9235??