Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square feet of his 2,100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business: Gross receipts: $36,960 Expenses: o Advertising: $80 o Business insurance: $685 o Business license: $100 o Comprehensive health insurance (entire year): $7,788 o Office supplies: $76 o Postage: $38 o Rent (entire year): $14,400 o Renter's insurance (entire year): $1,055 o Second phone line, exclusively for business: $103 o Tax preparation (allocated to business): $350 o Utilities (entire year): $2,281. Blake closed his business on April 1, 2018. He had no carryover losses and all assets were fully depreciated. If Blake elects to use the office-in-home (OIH) simplified method, what is the amount of his Schedule C net profit or loss? $34,515 $34,818 $35,153 $37,674 Windows Question 52 of 75. Pastor Martin received a total of $40,000 in ministerial earnings: $28,000 salary for ministerial services, $2,000 for performing weddings, and $10,000 tax-free parsonage allowance. Pastor Martin incurred $5,000 of unreimbursed expenses connected with his ministerial earnings: $4,500 related to his ministerial salary and $500 related to the weddings performed as self-employed. How much of the expense related to his self-employed earnings is deductible when figuring net income for income tax after allocation to the tax-free parsonage allowance? $125 $375 $500 $5,000 OMark for follow up Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square feet of his 2,100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business: Gross receipts: $36,960 Expenses: o Advertising: $80 o Business insurance: $685 o Business license: $100 o Comprehensive health insurance (entire year): $7,788 o Office supplies: $76 o Postage: $38 o Rent (entire year): $14,400 o Renter's insurance (entire year): $1,055 o Second phone line, exclusively for business: $103 o Tax preparation (allocated to business): $350 o Utilities (entire year): $2,281. Blake closed his business on April 1, 2018. He had no carryover losses and all assets were fully depreciated. If Blake elects to use the office-in-home (OIH) simplified method, what is the amount of his Schedule C net profit or loss? $34,515 $34,818 $35,153 $37,674 Windows Question 52 of 75. Pastor Martin received a total of $40,000 in ministerial earnings: $28,000 salary for ministerial services, $2,000 for performing weddings, and $10,000 tax-free parsonage allowance. Pastor Martin incurred $5,000 of unreimbursed expenses connected with his ministerial earnings: $4,500 related to his ministerial salary and $500 related to the weddings performed as self-employed. How much of the expense related to his self-employed earnings is deductible when figuring net income for income tax after allocation to the tax-free parsonage allowance? $125 $375 $500 $5,000 OMark for follow up