Complete Schedule C (Form 1040) based on the following scenario: Sophie Dubois is self-employed as a motivational speaker. The office for her company, Dubois Drives, is located at 3671 Williamsburg Road. At the end of the year she receives Form 1099-MISC from the various colleges where she has worked instead of receiving Form W-2. The total from all of the 1099-MISC forms she received is $38,474 for the current tax year. In addition to speaking engagements, Sophie sells DVDs and CDs of her speeches. The income from this is $19,000 received through credit card sales.

Sophie's expenses include:

Advertising $ 1,050 Office supplies $ 235 Personal draw $14,000 Rent $9,000

Electricity $ 924 Travel (hotels) $3,246 Health insurance $ 2,460 Travel (meals) $ 692 Business license $ 120 Travel (airfare) $4,864

Sophie drove a total of 13,636 miles for the year. Included in this total were her 721 commuting miles and 4,643 business miles. Sophie's car was put into service on July 16, 2014; this is the only vehicle she owns. She has written proof of her mileage and wishes to use the standard mileage rate. Answer the following questions based on the Schedule C (Form 1040) you completed for Sophie Dubois:

Select the gross income: a) $54,474 b) $57,474 c) $38,474 d) $43,474

Select the total expenses: a) $22,455 b) $36,455 c) $22,801 d) $22,870

Select the net profit or (loss): a) $34,673 b) $35,019 c) $21,019 d) $34,604