calculate the net loss or net profit based on the information for the year.
OME N Atte Sec . SCHEDULE C Profit or Loss From Business (Form 1040 or (Sole Proprietorship) 1040-SR) Go to www.lrs.gow Schedule for instructions and the latest information Department of the Treasury *Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Intemal Revenue Service Income 1 Gross recebe orales. Incons for line 1 and check the box this come was reported to you on Form W-2 and the Statutory employee" box on that form was 1 checked 2 Returns and allowances 2 3 Subtract line 2 from line 1 3 4 Cost of goods sold (from line 42) 4 5 Gross profit. Subtract line 4 from line 3 5 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income. Add lines 5 and 6. 7 Expenses. 8 Advertising..... 8 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) 20 Rent or lease (see instructions): 9 10 Commissions and foes a Vehicles, machinery, and equipment 10 11 Contract labor (see instructions) b Other business property 20a 12 11 Depletion 21 20b Repairs and maintenance 13 Depreciation and section 179 expense 12 22 Supplies (not included in Part III) 21 deduction (not included in Part II) 23 Taxes and licenses. 22 (see instructions) 24 Travel and meals: 23 14 Employee benefit programs (other than 13 a Travel on line 19) b Deductible meals (see instructions) 24a 15 Insurance (other than health) 16 Interest (see instructions): 14 25 Utilities a Mortgage (paid to banks, etc.) 15 26 Wages (less employment credits). 27a 24b b Other Other expenses (from line 48)..b Reserved for 25 17 Legal and professional services 16a future use. 26 16b 27a 17 27b Total Expenses Net Profit or Net Loss 1. You collected $100,000 in cash for tutoring services. 2. You have 10 hours of tutoring for the last week of December that was not billed to students at the rate of $60 per hour. 3. The total rent for your office is $2,500 per month. 4. Utilities total $1,800 for the year. 5. You paid a part-time receptionist $5,000 to answer the phone and make appointments. 6. You paid yourself a salary of $25,000 for the year. 7. Your total costs for office supplies, such as pens, paper, etc., totaled $3,000 for the year. 8. You decide that the education system is lagging in your city, and you donate $1,000 to your local high school. 9. You purchased 50 Gleim books for $5 each and you sold 35 of them for $15 each. 10. The total miles on your automobile for the year equal 10,000 miles of which 2,000 miles were for business purposes. Assume the mileage rate is .545 cents per mile. 11. Depreciation expense on office furniture is $500 for the year. 12. You paid $4,000 for personal health insurance for the year. 13. You take prospective clients out to lunch to discuss services. Your cost for meals for the year is $2,000. 14. Your advertising costs total $100 for the year
