2. The Rock Glen House Bed & Breakfast is operated as a sole proprietorship and had the following income and expenses for the year:

All of the above amounts relate to the business portion of the Bed & Breakfast;
the personal portion is accounted for separately. The Rock Glen House Bed &
Breakfast uses the cash method of accounting and has no inventory. The employer tax ID number is 95-1234567.

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Room rental income $164,250 Vending machine income 2,325 Advertising expense 4,720 Depreciation 18,180 Mortgage interest on the B&B 32,940 Wages of maid 15,450 Taxes and licenses 6,420 Supplies 8,930 Business insurance 6,300 Laundry expenses 4,290 Accounting fees 1,850 Office expenses 2,380 Utilities 6,350