1. Which of the following expenses reported on Schedule C (page 1) does not need to be substantiated on another form or schedule?

Car and truck expenses

Business use of the home when not opting to use the safe harbor method

Depreciation

Taxes and licenses

2. A cash-basis sole proprietor had the following cash receipts and disbursement for the year:

Net sales $80,000 Cost of goods sold 40,000 Operating expenses 20,000 Employee payroll taxes 3,000 Dividend income 900 Interest income from a personal savings account 200

what is the amount of reported net profit reported on Schedule C?

$40,000 , $17,000, $15,000,$18,000

3. A taxpayer reports $45,000 as net profit on Schedule C. The taxpayer reports a wage income of $89,700. The taxpayer's deduction for AGI for the self- employment tax in 2020 is:

3,578.

$6,004.

4,985.

$3,179.

4.If a 45-year-old employee contributes $12,000 to his employer's 401(k) plan during 2020, how much can he contribute to his employer's Roth 401(k)?

$7,000.

$18,500.

$12,500.

$0.

5. A taxpayer buys tickets to an event that she attends with her client. Which of the following statements is true?

The taxpayer can deduct 50% of the costs of the tickets as entertainment expense.

The taxpayer can deduct up to $25 of the costs of the tickets as a gift.

The taxpayer can deduct up to 50% of the cost of the tickets as a gift.

Either a. or b.

6.The self-employment tax in 2020 for a sole proprietor who reports $154,800 of self-employment profits on Schedule C, and has $71,300 of wages is:

$12,379.

$11,785.

$14,107.

$23,684