Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art drove his car 8,000 miles for

Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art drove his car 8,000 miles for business purposes and 24,500 miles in total. His actual expenses, including depreciation, for operating the auto are $14,600 since he had to have the car repaired several times. Art has always used the actual cost method in the past.

How much is Art's deductible auto expense for the year?

Round any interim division calculations to five decimal places. Round the final answer to the nearest dollar. $---------------

Kevin owns a retail store, and during the current year he purchased $907,000 worth of inventory. Kevin's beginning inventory was $90,700, and his ending inventory is $108,840. During the year, Kevin withdrew $18,140 in inventory for his personal use. Assume that he uses the cost method to value the inventory and there was no change in determining quantities, costs, or valuations between opening and closing inventory.

Use Part III of Schedule C below to calculate Kevin's cost of goods sold for the year.

Enter all amounts as positive numbers.

Part III Cost of Goods Sold (see instructions)
33 Method(s) used to
value closing inventory:
34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation . . . . 35
36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
37 Cost of labor. Do not include any amounts paid to yourself. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
39 Other costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . . . 42

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago

Question

Ensure continued excellence in people management.

Answered: 1 week ago

Question

Enhance the international team by recruiting the best people.

Answered: 1 week ago