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 Purchases LESS Cost of Items withdrawn for personal use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)