Ellen, who runs a successful nail salon, ran across a very interesting pamphlet on customer relations. The pamphlet was fifty pages long and costed $70.00. Ellen thought the price was outrageous. Accordingly, she bought one copy and photocopied the pages that she thought were pertinent and gave them to her employees. She copied forty of the pages out of the pamphlet for each of twenty employees. A disgruntled employee informed the publisher of the pamphlet what Ellen had done, and she was charged with copyright infringement. Ellen defended on the basis of the fair use doctrine.

1. List the four factors a court would consider in determining whether a violation occurred. Also, give your reasoned opinion as to whether Ellen is entitled to fair-use protection.

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.