Instructions

Complete the table using the information included in the scenario. You do not need to calculate the Net Profit or Loss. You only need to indicate the effect of each item on Net Profit or Loss as a positive or negative number. Please indicate revenues as positive and deductible expenses as negatives.

Scenario

Juliet files a joint tax return with her husband Romeo. Juliet has a management consulting business she operates as a cash basis sole proprietorship and reports her business income and expenses correctly on Schedule C. Romeo does not provide any services to the business. Juliet provides you with the following business-related items and wants to know how much each of the following items related to her consulting business will affect her Net Profit or Loss from the business (on Schedule C) for 2023. All the following items were received or paid in cash in 2023.

Item	Cash Amount	Effect on Net Profit or Loss (Reported on Schedule C)
Client revenues received in cash: (8 points)	$175,000
Expenses for a 5-day business trip to Boston in October. The trip was from Sunday night to Friday night and involved client meetings or events on Monday through Wednesday. The other days of the trip were spent sightseeing and visiting Romeo's parents in Cambridge:
2. Airfare for Juliet (8 points)	$750
3. Airfare for Romeo (8 points)	$750
4. 5 nights hotel (double occupancy rooms are the same price as single occupancy) (8 points)	$220 per night
5. Meals for both J & R (8 points)	$50 per day per person
6. 82 round trip miles in their personal vehicle to drive to the airport and back. Juliet uses the standard mileage method of deducting automobile costs (10 points)	$0
7. Airport parking for 5 days (8 points)	$95
8. Rental car (8 points)	$55 per day
9. Fine for illegally parking the rental car in downtown Boston (8 points)	$165
10. Home office expenses. Juliet uses 175 square feet of her home as an office regularly and exclusively for her business. The total square footage of the home is 3,500 square feet. Juliet uses the simplified method for deducting home office expenses. (10 points)	$0
11. Political contribution to a candidate that might be willing to award a city consulting project to Juliet (8 points)	$3,000
12. Estimated quarterly federal income tax payments (8 points)	$10,000 per quarter