Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211.

Scott’s CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year shows the following:

Scott also mentioned the following:
●● The expenses for dues and subscriptions were his country club membership dues for the year.
●● $300 of the charitable contributions were made to a political action committee.
●● Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold.
●● Scott placed a business auto in service on January 1, 2016 and drove it 3,792 miles for business, 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. His wife has a car for personal use.
Complete Schedule C on Pages 3-37 and 3-38 for Scott showing Scott’s net taxable profit from self-employment.

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Scott Butterfield, CPA Income Statement 12/31/2019 Income Statement REVENUES Tax Services Accounting Services Other Consulting Services TOTAL REVENUES COST OF SERVICES $ Current Period 1/1/2019 to 12/31/2019 76,123.00 49,001.00 $ 10,095.00 135,219.00 Prior Period 1/1/2018 to 12/31/2018 75,067.00 48,860.00 10.115.00 134,042.00 Salaries 32,000.00 30,100.00 Payroll Taxes 2,868.00 2,387.00 Supplies 1,391.00 1,548.00 TOTAL COST OF SERVICES 36,259.00 34,035.00 GROSS PROFIT (LOSS) 98,960.00 100,007.00 OPERATING EXPENSES Advertising and Promotion 300.00 350.00 Business Licenses and Permits 250.00 250.00 Charitable Contributions 425.00 275.00 Continuing Education 300.00 300.00 Dues and Subscriptions Insurance Meals and Entertainment Office Expense Postage and Delivery Printing and Reproduction 3,500.00 875.00 Office Rent Travel Utilities TOTAL OPERATING EXPENSES INET INCOME (LOSS) 4,400.00 150,00 50.00 100.00 14,000.00 865.00 3,500.00 875.00 5,500.00 150.00 50.00 100.00 14,000.00 865.00 2,978.00 29,193.00 2,978.00 28,193.00 $ 70,767.00 70,814.00