I have divided it to four parts. I hope it is clearer now. Thank you

SCHEDULEC (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Profit or Loss From Business OMB No. 1545-0074 (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. 2020 Attachment Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Social security number (SSN) A Principal business or profession, including product or service (see instructions) B Enter code from instructions Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) E Yes No No Yes Yes No Business address (including suite or room no.) City, town or post office, state, and ZIP code F Accounting method: (1) Cash (2) Accrual (3) Other (specify) G Did you materially participate in the operation of this business during 2020? If "No," see instructions for limit on losses H If you started or acquired this business during 2020, check here Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions J If "Yes," did you or will you file required Form(s) 1099? . Partl 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 2 Returns and allowances. 3 Subtract line 2 from line 1 Cost of goods sold (from line 42) 4 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 II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising Office expense (see instructions) 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions). Rent or lease (see instructions): 10 Commissions and fees a Vehicles, machinery, and equipment 20a Contract labor (see instructions) Other business property 2 3 4 5 6 7 8 18 18 9 20 10 11 11 b 20b 20b 21 22 23 24a 24b 25 26 27a 27b 28 29 11 Contract labor (see instructions) 11 b Other business property 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part III) expense deduction (not included in Part III) (see 23 Taxes and licenses. instructions) .. 13 24 Travel and meals: 14 Employee benefit programs a Travel (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions). 16 Interest (see instructions): 25 Utilities a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits). b Other 16b 27a Other expenses (from line 48). 17 Legal and professional services 17 b Reserved for future use 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 29 Tentative profit or loss). Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business: Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 31 Net profit or (loss). Subtract line 30 from line 29. . If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P 30 31 32a All investment is at risk. 326 Some investment is not at risk. Schedule C (Form 1040) 2020 Page 2 Schedule C (Form 1040) 2020 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: a Cost b Lower of cost or market c Other (attach explanation) Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . Yes 34 D No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation. 35 36 Purchases less cost of items withdrawn for personal use 36 37 Cost of labor. Do not include any amounts paid to yourself. 37 38 Materials and supplies 38 39 Other costs. 39 40 Add lines 35 through 39 40 41 Inventory at end of year 41 42 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you place your vehicle in service for business purposes? (month/day/year) / 44 Of the total number of miles you drove your vehicle during 2020, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehicle available for personal use?. Yes No 47a Do you have evidence to support your deduction? Yes No Yes No b If "Yes," is the evidence written?.. Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. 48 Total other expenses. Enter here and on line 27a 48 Schedule C (Form 1040) 2020 58. In July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting, and Stephen has produced the following financial information for this year: ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year-end. Page 9-40 . Customers owe ECR $14,300 for repairs completed this year, and while Stephen isn't sure which bills will eventually be paid, he expects to collect all but about $1,900 of these revenues next year. ECR has made the following expenditures: Interest expense Shop rent ($1,500 per month) Utilities Contract labor Compensation Liability insurance premiums ($350 per month) Term life insurance premiums ($150 per month) $ 1,250 27,000 1,075 8,250 21,100 4,200 1,800 The interest paid relates to interest accrued on a $54,000 loan made to Stephen in July of this year. Stephen used half of the loan to pay for 18 months of shop rent, and the remainder he used to upgrade his personal wardrobe. In July, Stephen purchased 12 months of liability insurance to protect against liability should anyone be injured in the shop. ECR has only one employee (the remaining workers are contract labor), and this employee thoroughly understands how to repair an electric propulsion system. On November 1 of this year, Stephen purchased a 12- month term life policy that insures the life of this key employee. Stephen paid Gecko Insurance Company $1,800; in return, Gecko promises to pay Stephen a $40,000 death benefit if this employee dies any time during the next 12 months. Complete a draft of the front page of Stephen's Schedule C. SCHEDULEC (Form 1040) Department of the Treasury Internal Revenue Service (99) Name of proprietor Profit or Loss From Business OMB No. 1545-0074 (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. 2020 Attachment Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Social security number (SSN) A Principal business or profession, including product or service (see instructions) B Enter code from instructions Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) E Yes No No Yes Yes No Business address (including suite or room no.) City, town or post office, state, and ZIP code F Accounting method: (1) Cash (2) Accrual (3) Other (specify) G Did you materially participate in the operation of this business during 2020? If "No," see instructions for limit on losses H If you started or acquired this business during 2020, check here Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions J If "Yes," did you or will you file required Form(s) 1099? . Partl 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 2 Returns and allowances. 3 Subtract line 2 from line 1 Cost of goods sold (from line 42) 4 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 II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising Office expense (see instructions) 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions). Rent or lease (see instructions): 10 Commissions and fees a Vehicles, machinery, and equipment 20a Contract labor (see instructions) Other business property 2 3 4 5 6 7 8 18 18 9 20 10 11 11 b 20b 20b 21 22 23 24a 24b 25 26 27a 27b 28 29 11 Contract labor (see instructions) 11 b Other business property 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part III) expense deduction (not included in Part III) (see 23 Taxes and licenses. instructions) .. 13 24 Travel and meals: 14 Employee benefit programs a Travel (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions). 16 Interest (see instructions): 25 Utilities a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits). b Other 16b 27a Other expenses (from line 48). 17 Legal and professional services 17 b Reserved for future use 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 29 Tentative profit or loss). Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business: Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 31 Net profit or (loss). Subtract line 30 from line 29. . If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P 30 31 32a All investment is at risk. 326 Some investment is not at risk. Schedule C (Form 1040) 2020 Page 2 Schedule C (Form 1040) 2020 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: a Cost b Lower of cost or market c Other (attach explanation) Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation . . Yes 34 D No 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation. 35 36 Purchases less cost of items withdrawn for personal use 36 37 Cost of labor. Do not include any amounts paid to yourself. 37 38 Materials and supplies 38 39 Other costs. 39 40 Add lines 35 through 39 40 41 Inventory at end of year 41 42 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you place your vehicle in service for business purposes? (month/day/year) / 44 Of the total number of miles you drove your vehicle during 2020, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehicle available for personal use?. Yes No 47a Do you have evidence to support your deduction? Yes No Yes No b If "Yes," is the evidence written?.. Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. 48 Total other expenses. Enter here and on line 27a 48 Schedule C (Form 1040) 2020 58. In July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting, and Stephen has produced the following financial information for this year: ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year-end. Page 9-40 . Customers owe ECR $14,300 for repairs completed this year, and while Stephen isn't sure which bills will eventually be paid, he expects to collect all but about $1,900 of these revenues next year. ECR has made the following expenditures: Interest expense Shop rent ($1,500 per month) Utilities Contract labor Compensation Liability insurance premiums ($350 per month) Term life insurance premiums ($150 per month) $ 1,250 27,000 1,075 8,250 21,100 4,200 1,800 The interest paid relates to interest accrued on a $54,000 loan made to Stephen in July of this year. Stephen used half of the loan to pay for 18 months of shop rent, and the remainder he used to upgrade his personal wardrobe. In July, Stephen purchased 12 months of liability insurance to protect against liability should anyone be injured in the shop. ECR has only one employee (the remaining workers are contract labor), and this employee thoroughly understands how to repair an electric propulsion system. On November 1 of this year, Stephen purchased a 12- month term life policy that insures the life of this key employee. Stephen paid Gecko Insurance Company $1,800; in return, Gecko promises to pay Stephen a $40,000 death benefit if this employee dies any time during the next 12 months. Complete a draft of the front page of Stephen's Schedule C