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 Depreciation Rent on Office Space Advertising Malpractice Insurance Utilities Travel (1.250 business miles driven) Lodgings - Hotels for business travel Taxes & Licenses Salary for her bookkeeper Meals with clients Meals with friends Supplies Accounting Fees Legal Fees Interest on Bank Loan Cellphone for biz usage Suits/Uniform $5,413 $ 15,250 $ 20,500 $ 7,577 $ 6,000 $ 5,850 ? $600 $5,500 $15,550 $ 10,050 $3,500 $ 5,600 $9,950 $10,250 $4,550 $1,500 $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. SCHEDULEC Profit or Loss From Business OMB No 1545-0014 (Form 1040) (Sole Proprietorship 2020 Department of the Treasury Go to www.ira.gov/Schedule for instructions and the latest information Alert inter Revenue Service Attach to Form 1040, 1040-SR, 1040-NR, or 1041: partnerships generally must file Form 1065. Segons No 09 Name of proprio Social security number (ISSN E WO A Principal business or profession, including product or service se instructions B Enter code from instructions Business name. It no separate business name, leave blank. DEmplayer EN Business address including suite or room no.) City, town post office state, and ZIP code F Accounting method (0) Cash (2 Accrual ) Other specity Did you materially participate in the operation of this business during 20207 "No," se instructions limone Yes H If you started or acquired this business during 2020, check here 1 Did you make any payments in 2020 that would require you to file Formis) 10997 See instructions Yes J "Yes." did you or will you fie reguired Form 10992 Yes Ne 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 2 Returns and allowances 2 3 Subtract line 2 from line 1 3 4 Cost of goods sold from line 42) 4 5 Gross profit. Subtractine 4 from line 3 S 6 Other income, including federal and state gasoline or fuel tax creditor rotund see instructions 6 7 Gross income. Add lines 5 and 6 7 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Ofice expenses instruction 18 9 Car and truck expenses 19 Pension and profit sharing plans 19 instructions) 9 20 Rent or lease see instructions 10 Commissions and fees 10 a Vehicles, machinery, and equipment 200 11 Contract labore instructions 11 Other business property 200 12 Depletion 12 21 Repairs and maintenance 21 13 Depreciation and section 179 expense deduction (not Supplies not included in Part 22 Included in Part 9 23 Taxes and loses 23 Instructions 13 24 Travel and meals 14 Employee benefit programs a Travel 24 other than on line 19 14 b Deductible meals 15 Insurance (other than her 15 instructions) 24 16 Interests instructions: 25 Utilities 25 . Mortgage paid to banks, etc) 16a 26 Wages les employment credits 26 Other 160 27a Other expenses from line 48 270 17 Legal and professional services Reserved for future use 270 23 Total expenses before expenses for business use of home. Add lines 8 through 27a Tentative profit or loss). Subtract line 28 from line 7 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 3829 unless using the simplified method. See instructions. Simplified method filers only: Enter the total square footage of your home and 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 31 Net profit or loss. Subtract line 30 from line 29 . If a proft, enter on both Schedule 1 Form 1040), line 3, and on Schedule SE, line 2. of you checked the box on line 1. see instructions). Estates and trusts, enter on Form 1041, line 2 31 . 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. . you checked 32a. enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2 of you checked the box on line 1, see the line 31 instructions. Estates and trusts, enter on 320 Al investment is tisk Form 1041, line 3. 32 Some investment is not you checked 32b, you must attach Form 6198. Your loss may be limited For Paperwork Reduction Act Notice, see the separate instructions. Cat. No.11330P Schedule Form 10492000 &