Comprehensive Problem 7-1 Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Sherry keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $351,700 Returns and allowances 4,000 Expenses: Beginning inventory (at cost) $ 84,300 Add: purchases 100,700 Cost of goods available for sale 185,000 Less: ending inventory (at cost) 75,000 Cost of goods sold $110,000 Rent 23,800 Insurance 1,500 Legal and accounting fees 2,800 Payroll 37,200 Payroll taxes 3,440 Utilities 1,850 Office supplies 750 Advertising 2,100 Sherrys bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2017. Required: Complete Sherry's Schedule C and Form 4562. Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required round any dollar amount to the nearest dollar. Click here to access the depreciation table to use for this problem.