Michael Jackson is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Michaels CPA practice is located at 678 Third Street, Riverside, CA 92860. Michaels income statement for the year shows the following:

Michael also mentioned the following:

• The expenses for dues and subscriptions were his country club membership dues for the year.

• $300 of the charitable contributions were made to a political action committee.

• Michael does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold.

• Michael placed a business auto in service on January 1, 2016 and drove it 3,792 miles for business, 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. His wife has a car for personal use.

Complete Schedule C in its entirety for Michael, showing Michaels net taxable profit or loss from self-employment.

1. 3, 4 .....5 .... 7 Michael Jackson, CPA Income Statement Current Period 01/01/2019 to 12/31/2019 Revenue Tax Services Accounting Services Other Consulting Services $ 76,123.00 49,001.00 10,095.00 135,219.00 Prior Period 01/01/2018 to 12/31/2018 $ 75,067.00 48,860.00 10,115.00 134,042.00 Total Revenues Less Cost of Services Salaries Payroll Taxes Supplies Total Cost of Services 32,000.00 2,868.00 1,391.00 36,259.00 30,100.00 2,387.00 1,548.00 34,035.00 100,007.00 Gross Profit (Loss) 98,960.00 300.00 250.00 Operating Expenses Advertising and Promotion Business Licenses and Permits Charitable Contributions Continuing Education Dues and Subscriptions Insurance Meals and Entertainment Office Expenses Postage and Delivery Printing and Reproduction Office Rent Travel Utilities Total Operating Expenses Net Income (Loss) 425.00 300.00 3,500.00 875.00 4,400.00 150.00 350.00 250.00 275.00 300.00 3,500.00 875.00 5,500.00 150.00 50.00 100.00 14,000.00 865.00 2.978.00 50.00 100.00 14,000.00 865.00 2,978.00 28,193.00 29,193.00 70,767.00 70,814.00 1. 3, 4 .....5 .... 7 Michael Jackson, CPA Income Statement Current Period 01/01/2019 to 12/31/2019 Revenue Tax Services Accounting Services Other Consulting Services $ 76,123.00 49,001.00 10,095.00 135,219.00 Prior Period 01/01/2018 to 12/31/2018 $ 75,067.00 48,860.00 10,115.00 134,042.00 Total Revenues Less Cost of Services Salaries Payroll Taxes Supplies Total Cost of Services 32,000.00 2,868.00 1,391.00 36,259.00 30,100.00 2,387.00 1,548.00 34,035.00 100,007.00 Gross Profit (Loss) 98,960.00 300.00 250.00 Operating Expenses Advertising and Promotion Business Licenses and Permits Charitable Contributions Continuing Education Dues and Subscriptions Insurance Meals and Entertainment Office Expenses Postage and Delivery Printing and Reproduction Office Rent Travel Utilities Total Operating Expenses Net Income (Loss) 425.00 300.00 3,500.00 875.00 4,400.00 150.00 350.00 250.00 275.00 300.00 3,500.00 875.00 5,500.00 150.00 50.00 100.00 14,000.00 865.00 2.978.00 50.00 100.00 14,000.00 865.00 2,978.00 28,193.00 29,193.00 70,767.00 70,814.00