I would like someone to possibly check my work for any errors:

INCOME TAX RETURN PROBLEM

Below is the taxpayer information for Beverly Johnson:

Beverly (SS# 138-09-1983, date of birth: April 2, 1985) is a self-employed consultant whose business uses the accrual method of accounting. Her principal business code is 540700. Her business is located at 1501 Broadway, New York, N.Y., 10019. During the year, she had the following income and expense items:

Income

Professional Fees Earned $200,000

Expenses

Office Expenses $ 5,413

Depreciation $ 15,250

Rent on Office Space $ 20,500

Advertising $ 7,577

Malpractice Insurance $ 6,000

Utilities $ 5,850

Travel (1,250 business miles driven) ?

Lodgings Hotels for business travel $600

Taxes & Licenses $5,500

Salary for her bookkeeper $15,550

Meals with clients $ 10,050

Meals with friends $3,500

Supplies $ 5,600

Accounting Fees $9,950

Legal Fees $10,250

Interest on Bank Loan $4,550

Cellphone for biz usage $1,500

Suits/Uniform $2,800

REQUIRED:

Please prepare the 2020 Schedule C (see attachment) for Beverly Johnson. Round up amounts to the nearest dollar, if necessary. Use the 2020 tax rules. DO NOT COMPLETE PART III & PART IV

SCHEDULEC Profit or Loss From Business OMB No. 1545-0074 (Form 1040) (Sole Proprietorship) 2020 Go to www.irs.gov/Schedule for instructions and the latest information. Department of the Treasury Attachment Internal Revenue Service (9) Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) BEVERLY JOHNSON 138-09-1983 A Principal business or profession, including product or service (see instructions) B Enter code from instructions SELF EMPLOYED CONSULTANT | 5 4 0 7 0 0 Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) DO00 Yes 0 0 21 E E Business address (including suite or room no.) 1501 BROADWAY City, town or post office, state, and ZIP code NEW YORK, NY, 10019 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 7 Yes No H If you started or acquired this business during 2020, check here ..... I Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions Yes No J If "Yes," did you or will you file required Form(s) 1099? No 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 O 1 200,000 2 Returns and allowances. 2 0 3 Subtract line 2 from line 1 3 200,000 4 Cost of goods sold (from line 42) 4 0 5 Gross profit. Subtract line 4 from line 3 5 200,000 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 7 Gross income. Add lines 5 and 6 7 200,000 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 7,577 18 Office expense (see instructions) 18 5,413 9 Car and truck expenses (see ( 19 Pension and profit-sharing plans 19 0 instructions). 9 719 20 Rent or lease (see instructions): 10 Commissions and fees 10 0 a Vehicles, machinery, and equipment 20a 0 11 Contract labor (see instructions) 11 b Other business property 20b 20,500 12 Depletion. 12 Repairs and maintenance 21 0 13 Depreciation and section 179 22 22 5,600 expense Supplies (not included in Part I) deduction (not 23 included in Part III) (500 Taxes and licenses 23 5,500 instructions) 13 15,250 24 Travel and meals: 14 Employee benefit programs a Travel 24a 600 (other than on line 19) 14 0 b Deductible meals (see 15 Insurance (other than health) 15 6,000 instructions) 24b 5,025 16 Interest (see instructions): 25 Utilities 25 5,850 a Mortgage (paid to banks, etc.) 16a , ol 26 Wages (less employment credits). 26 15,550 b Other 16b 4,550 27a Other expenses (from line 48) 27a 1,500 17 Legal and professional services 17 20,200 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 119,834 29 Tentative profit or loss). Subtract line 28 from line 7. ... 29 80166 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 30 0 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. 31 80166 If a loss, you must go to line 32. a , 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 32a All investment is at risk. . Form 1041, line 3. 32b Some investment is not at risk. 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 Schedule C (Form 1040) 2020 Page 2 2 Schedule C (Form 1040) 2020 Part III Cost of Goods Sold (see instructions) 33 34 Method(s) used value closing inventory: a O Cost b b N Lower of cost or market Other (attach explanation) Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation .. " Yes 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 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 42 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 N No Yes 47a Do you have evidence to support your deduction? 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. TELEPHONE BILL 1,500 48 Total other expenses. Enter here and on line 27a 48 1,500 Schedule C (Form 1040) 2020