Connor is a self$-$employed taxpayer and owns Crestwood Construction Company in Lincoln, NB$.$

company during $2022.$ Assume that Connor accounts for business activities using the cash method

and is himself a cash basis, calendar$-$year taxpayer. What is Counor's net profit $($loss$)$ for $2022?$

For partial credit, please show all calculations.

Crestwood completed three commercial construction projects during $2022.$ The revenue that the

company earned from these projects totaled $$2,459,000.$ As of December $31,2022,$ Connor had

received payment $($in cash$)$ of $$2,183,000$ of this amount. At the end of the year, Crestwood was

May $2023,$ Connor had received a down payment on that project's construction of $$525,000$ in

August $2022.$ The remaining balance for the building, $$817,000$ is due upon completion.

Crestwood purchased $$937,000$ of materiats for construction, inctuding tumber, drywitt, tife, and

various fasteners, during $2022.$ It used all of these materials in $2022.$

During $2022,$ the company paid $$949,500$ in salary and wages for its employees.

Crestwood provided health tirsurance to its employees during the year. The premitums that the

company paid on behalf of its employees totaled $$256,000.$

Connor carries insurance on the company's office and equipment. On August $1,2022,$ he entered

into a new insurance agreement and paid $$24,000$ for insurance on the oftice for $24$ months. The

contract began inmedlately. On thit same dily, he atso patd $$4,000$ for eight months of insurance

coverage on the company's equipment, for which the insurance coverage begins July $1,2024.$

On April $8,2022,$ Crestwood sold some old construction equipment for $$90,500.$ The equipment

was initially placed into service on August $20,2016$ and had an adjusted basis of $$87,050.$

Connor uses his truck for both business and personal purposes and had the following $2022$

expenses: Gas$/$oil $-$ $$3,150,$ insurance $-$ $$535,$ car loan interest $-$ $$630,$ and automobile property

tax $($based on value$)-$ $$810.$ Connor drove a total of $11,000$ miles for business purposes and

$4,000$ for personal reasons. Connor uses the actual cost method to account for this mixed$-$use

automobile expense.

In January $2022,$ Crestwood paid $$10,000$ for an insurance policy to cover the business in case of

any accidents on the job. The policy was good for one year.

In March of $2022,$ Connor took a potential client out for dinner. The meal was at a restaurant and

cost $$200,$ which is typical in that area. After the meal, Connor took the potential elient to a

baseball game $($the tickets $cos$$$330$ each$).$

In September of $2022,$ Connor took a $3-$day trip to explore new building techniques. He had a

conference for $2$ days and then went sight$-$seeing for I day. Costs included: airfare $($ $$450)$; meals

at restaurants $($$$100/$day$)$; other incidentals $($$$20/$day$).$

Business Net Profit $($Loss