Sawyer and four others formed a & e salvage and began a project of recovering salvage materials from the site of the former liberty fibers rayon plant. the site consisted of 300 acres, multiple buildings, and extensive ground piping. as a & e removed the salvage materials, it discovered that many of the pipes and buildings contained racm, a toxic substance. in the removal process, racm was not treated or removed properly according to statutory requirements. the federal government stepped in and cleaned up the racm from the property and sought reimbursement from liable parties. who is liable for the clean-up costs?

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.