Ashley Panda is single and has a 20 year old son named Bill. Bill lives with Ashley and she fully supports him. Bill spent 2020 traveling in Asia and was not a student. In 2020 Bill had gross income of $5,780.

Ashley owns and operates Panda Enterprises, LLC, a data processing service company. Panda Enterprises cash basis 2020 P&L Statement, generated in QuickBooks accounting software, shows the following: revenues of $340,000, office expense of $66,759, employee salary of $63,000, employee payroll taxes of $4,820, health insurance premiums of $26,000, total legitimate business meal expenses of $3,000, and rent expense of $24,000. There is no depreciation for either book or tax in 2020 because all depreciable equipment owned has been fully depreciated in previous years. The portion of the health insurance premiums paid to cover the employee was $9,600. The portion of the premium paid to cover Ashley was $9,700, and the remainder of the cost was for Bills coverage.

Ashley has an extensive stock portfolio and has prepared the following analysis.

Item Amount

Unreimbursed medical expenses $4,721 State income taxes paid 3,840 Real property taxes on personal residence 4,330 Interest paid on home mortgage 8,137 Charitable contributions 1,372 State sales taxes 619

Notes__________________________

all for Ashleys visits to her doctors

$200K acquisition loan secured by residence checks paid to Ashleys church amount from IRS sales tax table

Any help with the Schedule C? Thank you

Stock # of Shares Date Purchased Date Sold Per Share Cost Per Share Selling Price Total Dividends AA 10 6/22/20 10/11/20 $ 80 $ 74 $ 30 BB 30 8/5/09 43 157 120 10/11/20 10/11/20 CC 15 12/16/19 62 33 65 Note: Ashley received a Form 1099-B from her stockbroker that included the adjusted basis and sales proceeds for each of her stock transactions. The per-share cost includes commissions, and the per-share selling price is net of commissions. Also, the dividends are the actual cash dividends received in 2020 and are both ordinary dividends (rather than liquidating dividends) and qualified dividends. Ashley received $1,200 of interest income from state of Ohio bonds and $300 of interest income on her First Savings Bank account. She paid $15,000 of alimony to her former husband whom she divorced in 2015, and $35,000 of estimated federal income tax payments for 2020. Ashley itemizes her deductions and had the following items, which may be relevant to her return: ACC 401 Ch 16 Comprehensive Problem Solution Gross Income: Schedule C Income Dividend Income Interest Income Net long-term capital gain Total Gross Income 152,421 215 300 2,925 173,761 Schedule C Revenue Office Expense Employee Salary Employee Payroll Taxes Health Insurane Premiums Rent Expense Meal Expenses Ashley Sched C profit x 92.35% (7.65% reduction) x 2.9% medicare tax rate 12.4% SS tax rate x 137,700 Total SE tax x 50% of SE tax 340,000 (66,759) (63,000) (4,820) (26,000) (24,000) (3,000) 152,421 14,721 > $137,700 SS threshold 17,075 21,636 Deductions for AGI: Self-Employment Tax deduction Self-Employed health insurance Alimony paid Total Deductions for AGI 15,000 42,218 AGI 131,543 Itemized Deductions: Meidcal Expense State Taxes Estate Income tax Chartiable contributions Home mortgage interest Total Itemized Deductions 3,840 4,330 1,372 612 17,679 MTI QBI TI before QBI Ded Less: LTCG Less: QD Total MTI Sched C profit Less: SE Ins ded Less: SE tax ded Total QBI Qualified Business Income Deduction: Lesser of MTI or QBI x 20% QBI Deduction 20% Single tax on $ Taxable income Less: LTCG Less: qualified dividends Ti taxed at ordinary rates 88,579 Tax on Ti taxed at ordinary rates TI is > $40,000 & $137,700 SS threshold 17,075 21,636 Deductions for AGI: Self-Employment Tax deduction Self-Employed health insurance Alimony paid Total Deductions for AGI 15,000 42,218 AGI 131,543 Itemized Deductions: Meidcal Expense State Taxes Estate Income tax Chartiable contributions Home mortgage interest Total Itemized Deductions 3,840 4,330 1,372 612 17,679 MTI QBI TI before QBI Ded Less: LTCG Less: QD Total MTI Sched C profit Less: SE Ins ded Less: SE tax ded Total QBI Qualified Business Income Deduction: Lesser of MTI or QBI x 20% QBI Deduction 20% Single tax on $ Taxable income Less: LTCG Less: qualified dividends Ti taxed at ordinary rates 88,579 Tax on Ti taxed at ordinary rates TI is > $40,000 &