Bryan followed in his father's footsteps and entered into the carpet business.He owns and operates I Do Carpet (IDC).Bryan prefers to install carpet only, but in order to earn additional revenue, he also cleans carpets and sells carpet cleaning supplies.Compute his taxable income for the current year under that cash basis considering the following items and complete the Schedule C:

a)IDC contracted with a homebuilder in December of last year to install carpet in 10 new homes being built.The contract price of $90,000 includes $55,000 for materials (carpet).The remaining $35,000 is for IDC's service of installing the carpet.The contract also stated that all money was to be paid up front.The homebuilder paid IDC in full on December 28, 2018.The contract required IDC to complete the work by January 31, 2019.Bryan purchased the necessary carpet on January 2 and began working on the first home January 4.He completed the last home on January 27.

b)IDC entered into several other contracts this year and completed the work before year-end (2019).The work cost $130,000 in materials and IDC elects to immediately deduct his materials.Bryan billed out $250,000 but only collected $230,000 by year-end.Of the $20,000 still owed to him, Bryan wrote off $3,000 he didn't expect to collect as a bad debt from a customer experiencing extreme financial difficulties.

c)IDC entered into a three-year contract to clean the carpets of an office building.The contract specified that IDC would clean the carpets monthly from July 1 of 2019 through June 30, 2022.IDC received payment in full of $8,640 ($240 a month for 36 months) on June 30, 2019.

d)IDC sold 100 bottles of carpet stain remover this year for $5 per bottle (it collected $500).IDC sold 40 bottles on June 1 and 60 bottles on November 2.IDC had the following carpet cleaning supplies on hand for this year, and IDC has elected to use the LIFO method of accounting for inventory under a perpetual inventory system:

Purchase Date Bottles Total Cost

November 201 40 $120

February 2019 35 $112

July 2019 25 $85

August 2019 40 $140

Totals 140 $457

e)On August 1, 2019, IDC needed more room for storage and paid $900 to rent a garage for 12 months.

f)On November 30, 2019, Bryan decided it was time to get his logo on the sides of his work van.IDC hired We Paint Anything, Inc. (WPA), to do the job.IDC paid $500 down and agreed to pay the remaining $1,500 upon completion of the job.WPA indicated it wouldn't be able to begin the job until January 15 of next year, but the job would only take one week to complete.Due to circumstances beyond its control, WPA wasn't able to complete the job until April 1of next year, at which time IDC paid the remaining $1,500.

g)In December 2019, Bryan's son, Aiden, helped him finish some carpeting jobs.IDC owed Aiden $600 (reasonable) compensation for his work.However, Aiden did not receive the payment until January of next year.

h)IDC also paid $1,000 for interest on a short-term bank loan relating to the period from November 1, 2019 through March 31, 2020.