John Mason operates a consulting business, Mason Enterprises, as a sole proprietorship. He had to transfer $100,000 of stocks and securities into Mason Enterprisess name to show financial viability for the business. During the current year, the business had the following income and expenses from operations:

Consulting revenue 125,000

Travel expenses 40,000

Transportation 3,000

Advertising 7,000

Office expense 3,000

Telephone 1,000

Dividend income 5,000

Interest income 2,000

Charitable contribution 1,000

Political contribution 6,000

Requirements

a) Determine the Schedule C net income. How are items not included in the Schedule C net income reported?

b) Refer to the information in the preceding problem, except that John and his wife Mary are equal partners in Mason Enterprises, which operates as a partnership. How would they report the income and loss items from partnership operations?

c) Refer to the information in the problem, except that John operates Mason Enterprises as an S corporation. How would John report the income and loss items from S corporation operations?