a.)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 92041. Scotts CPA practice is located at 678 Peso Dr., La Mesa, CA 92041. During 2014, Scott had the following income and expenses: Fees from CPA practice $128,250 Expenses: Car mileage (3,202 business miles)

1,793 Business insurance

870 Office expense

3,450 Rent on office space

8,400 City business license

150 Travel expense

4,100 Meals and entertainment (100%)

4,780 Utilities

1,625 Wages of secretary 25,700 Scott placed his car in service on January 1, 2009. This year, he commuted 2,000 miles in it and drove it 4,000 miles for nonbusiness purposes. His wife has a car for personal use.

b.)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

Transportation 7,680 miles, using standard mileage method Entertainment in" total 4,180

Seven gifts at $50 each

450 Rent and utilities for apartment in total 10,500

(20% is used for a home office) What is the net income Margaret should show on her Schedule C? Show the cal-culation of her taxable business income.