I couldnt figure out the answer for Schedule C line 13, Depreciation and section 179 expense deduction (not included in Part3)
How can I solve this problem? Could you please help?
Thank you.
InstructionsSchedule of Fixed Asset Rollforward Schedule C Form 4562 Instructions Comprehensive Problem 8-1 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) Add: purchases Cost of goods available for sale Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising $84,300 100,700 185,000 75,000 $110,000 23,800 1,500 2,800 37,200 3,440 1,850 750 2,100 Sherry's 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 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 2018 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 "O". If required round any dollar amount to the nearest dollar Schedule of Fixed Asset Rollforward Sherry's bookkeeper has provided the following book-basis fixed asset rollforward Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis) 2017 DEPR COST 2016 DEPR 1,796.67 1,960.00 1,960.00 1,796.67 1,960.00 1,960.00 2018 ACCUM DEPR 5,716.67 5,716.67 NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR VALUE 4,083.33 4,083.33 2/15/2016 SL 9,800.00 CASH REGISTER 2016 TOTAL ADDITIONS 9,800.00 10/12/2017 SL 4,500.00 73,600.00 8,100.00 17,900.00 RETAIL FIXTURES FURNITURE 2017 TOTAL ADDITIONS TOTAL 642.86 128.57 514.29 289.28 1,157.15 1,796.67 2,249.28 3,117.15 160.71 803.57 642.86 1,446.43 7,163.10 3,696.43 2,957.14 6,653.57 10,736.90 10/12/2017 SL 5 32,000.00 717,000.00 3,500.00 28,266.67 15,583.33 3,091.67 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 3,733.33 1,416.67 408.33 3,733.33 1,416.67 408.33 DELIVERY TRUCK DESK AND CABINETRY 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 5 32,000.00 17,000.00 5 3,500.00 52,500.00 70,400.00 3,733.33 1,416.67 408.33 -5,558.33 1,796.67 2,249.28 8,675.48 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2018 TOTAL ADDITIONS TOTAL 3,733.33 1,416.67 408.33 5,558.33 12,721.43 28,266.67 15,583.33 3,091.67 46,941.67 57,678.57 Schedule C Complete Sherry's Schedule C SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Sherry Hopson A Principal business or profession, including product or service (see instructions) OMB No. 1545-0074 Profit or Loss From Business 2018 (Sole Proprietorship) Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065 Attachment Sequence No. 09 Social security number (SSN) 123-45-6789 B Enter code from instructions Retail Clothing Store Business name. If no separate business name, leave blank. Hopson Retail 448140 D Employer ID number (EIN), (see instr.) C 951-23-4321 E Business address (indluding suite or room no.) 4321 Heather Drive City, town or post office, state, and ZIP code Accounting method: (1)0 Cash (2)Accrual (3)DOther (specify) Did you "materially participate" in the operation of this business during 2018? If "No," see instructions for limit Henderson, NV 89002 F G 2 Yes O No H If you started or acquired this business during 2018, check here..._.. . . .. .. . .. . . _. . .. . . IDid you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) Yes No I Did you make any payments in 2018 that would require you to file Form(s) 1099 (see instructions) . Yes No If "Yes," did you or will you file required Forms 1099?. . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . .. . . . . . . . .. Yes No Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. . . . . . . . . . . . . 1 351,700V 4,000 2 3 347,700 4 110,000 5 237,700 6 3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . .. . . . 5 Gross profit. Subtract line 4 from line 3. . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions). . . . 7 Gross income. Add lines 5 and 6 Part I1 8 Advertising . 9 Car and truck expenses (see 7237,700 Expenses. Enter expenses for business use of your home only on line 30 2,100 18 Office expense (see instructions). 18 750 8 19 Pension and profit-sharing plans. . . . 19 9 10 11 Contract labor (see instructions) 11 12 10 Commissions and fees . .. . a Vehicles, machinery, and equipment 20a 20b 23,800 21 13 Depreciation and section 179 22 Supplies (not included in Part III).. . 3,440 expense deduction (not included 23 23 Taxes and licenses . . .. in Part III) (see instructions)13 31,358X 14 Employee benefit programs a Travel 24a . . b Deductible meals 15 Insurance (other than health) 15 1,500 24b 16 Interest (see instructions): 25 1,850 InstructionsSchedule of Fixed Asset Rollforward Schedule C Form 4562 Instructions Comprehensive Problem 8-1 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) Add: purchases Cost of goods available for sale Less: ending inventory (at cost) Cost of goods sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising $84,300 100,700 185,000 75,000 $110,000 23,800 1,500 2,800 37,200 3,440 1,850 750 2,100 Sherry's 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 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 2018 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 "O". If required round any dollar amount to the nearest dollar Schedule of Fixed Asset Rollforward Sherry's bookkeeper has provided the following book-basis fixed asset rollforward Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis) 2017 DEPR COST 2016 DEPR 1,796.67 1,960.00 1,960.00 1,796.67 1,960.00 1,960.00 2018 ACCUM DEPR 5,716.67 5,716.67 NET BOOK ASSET IN SERVICE METHOD LIFE BASIS DEPR DEPR VALUE 4,083.33 4,083.33 2/15/2016 SL 9,800.00 CASH REGISTER 2016 TOTAL ADDITIONS 9,800.00 10/12/2017 SL 4,500.00 73,600.00 8,100.00 17,900.00 RETAIL FIXTURES FURNITURE 2017 TOTAL ADDITIONS TOTAL 642.86 128.57 514.29 289.28 1,157.15 1,796.67 2,249.28 3,117.15 160.71 803.57 642.86 1,446.43 7,163.10 3,696.43 2,957.14 6,653.57 10,736.90 10/12/2017 SL 5 32,000.00 717,000.00 3,500.00 28,266.67 15,583.33 3,091.67 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 3,733.33 1,416.67 408.33 3,733.33 1,416.67 408.33 DELIVERY TRUCK DESK AND CABINETRY 6/1/2018 SL 6/1/2018 SL 6/1/2018 SL 5 32,000.00 17,000.00 5 3,500.00 52,500.00 70,400.00 3,733.33 1,416.67 408.33 -5,558.33 1,796.67 2,249.28 8,675.48 DELIVERY TRUCK DESK AND CABINETRY COMPUTER 2018 TOTAL ADDITIONS TOTAL 3,733.33 1,416.67 408.33 5,558.33 12,721.43 28,266.67 15,583.33 3,091.67 46,941.67 57,678.57 Schedule C Complete Sherry's Schedule C SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Sherry Hopson A Principal business or profession, including product or service (see instructions) OMB No. 1545-0074 Profit or Loss From Business 2018 (Sole Proprietorship) Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065 Attachment Sequence No. 09 Social security number (SSN) 123-45-6789 B Enter code from instructions Retail Clothing Store Business name. If no separate business name, leave blank. Hopson Retail 448140 D Employer ID number (EIN), (see instr.) C 951-23-4321 E Business address (indluding suite or room no.) 4321 Heather Drive City, town or post office, state, and ZIP code Accounting method: (1)0 Cash (2)Accrual (3)DOther (specify) Did you "materially participate" in the operation of this business during 2018? If "No," see instructions for limit Henderson, NV 89002 F G 2 Yes O No H If you started or acquired this business during 2018, check here..._.. . . .. .. . .. . . _. . .. . . IDid you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) Yes No I Did you make any payments in 2018 that would require you to file Form(s) 1099 (see instructions) . Yes No If "Yes," did you or will you file required Forms 1099?. . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . .. . . . . . . . .. Yes No Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. . . . . . . . . . . . . 1 351,700V 4,000 2 3 347,700 4 110,000 5 237,700 6 3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . .. . . . 5 Gross profit. Subtract line 4 from line 3. . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions). . . . 7 Gross income. Add lines 5 and 6 Part I1 8 Advertising . 9 Car and truck expenses (see 7237,700 Expenses. Enter expenses for business use of your home only on line 30 2,100 18 Office expense (see instructions). 18 750 8 19 Pension and profit-sharing plans. . . . 19 9 10 11 Contract labor (see instructions) 11 12 10 Commissions and fees . .. . a Vehicles, machinery, and equipment 20a 20b 23,800 21 13 Depreciation and section 179 22 Supplies (not included in Part III).. . 3,440 expense deduction (not included 23 23 Taxes and licenses . . .. in Part III) (see instructions)13 31,358X 14 Employee benefit programs a Travel 24a . . b Deductible meals 15 Insurance (other than health) 15 1,500 24b 16 Interest (see instructions): 25 1,850
