1a Margaret started her own business in the current year and will report a profit for her first year Her results of operations are as follows Gross Income $50,000 Travel 1,000 Contribution to Presidential Election Campaign 100 Entertainment in total 4,400 Eight gifts at $50 each 400 Rent utilities for apartment in total (30 is used for a home office) 10,500 Transportation 7,680 miles, using standard mileage method Complete the table below to determine the net income Margaret should show on her Schedule C Gross Income Expenses Travel Political Contribution Transportation Entertainment Gifts Rent and Utilities Total Expenses Taxable Business Income 1b Kevin owns a retail store, and during the current year he purchased $610,000 worth of inventory Kevins beginning inventory was $67,000, and his ending inventory is $77,200 During the year, Kevin withdrew $1,780 in inventory for his personal use Calculate Kevins cost of goods sold for the year (Part III from Schedule C if line is zero, leave blank) 35 Inventory at the Beg of the Year 36 Purchases LESS Cost of Items withdrawn for personal use 37 Cost of labor 38 Materials and Supplies 39 Other costs 40 Add lines 35 through 39 Inventory at the end of the Year Cost of Goods Sold (Subtract line 41 from 40)

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1a. Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as

1a. Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows:

Gross Income	$50,000
Travel	1,000
Contribution to Presidential Election Campaign	100
Entertainment in total	4,400
Eight gifts at $50 each	400
Rent & utilities for apartment in total (30% is used for a home office)	10,500
Transportation 7,680 miles, using standard mileage method

Complete the table below to determine the net income Margaret should show on her Schedule C.

Gross Income:
Expenses:
Travel
Political Contribution
Transportation
Entertainment
Gifts
Rent and Utilities
Total Expenses:
Taxable Business Income:

1b. Kevin owns a retail store, and during the current year he purchased $610,000 worth of inventory. Kevins beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Calculate Kevins cost of goods sold for the year. (Part III from Schedule C if line is zero, leave blank).

35. Inventory at the Beg of the Year:
36. Purchases LESS Cost of Items withdrawn for personal use
37. Cost of labor
38. Materials and Supplies
39. Other costs
40. Add lines 35 through 39:
Inventory at the end of the Year:
Cost of Goods Sold (Subtract line 41 from 40)