n July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting and Stephen has produced the following financial information for this year. ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year end. Customers owe ECR $14,300 for repairs completed this year, and while Stephen isnt sure which bills will eventually be paid, he expects to collect all but about $1,900 of these revenues next year. ECR has made the following expenditures: Interest expense 1,250 Shop rent 27,000 Utilities 1075 Contract labor 8,250 Compensation 21100 Liability insurance premiums 4,200 Term life insurance premiums 1,800 The interest paid relates to interest accrued on a $54,000 loan made to Stephen in July of this year. Stephen used half of the loan to pay for 18 months of shop rent and the remainder he used to upgrade his personal wardrobe. In July, Stephen purchased 12 months of liability insurance to protect against liability should anyone be injured. ECR has only one employee. On November 1 of this year, Stephen purchased a 12 month term life policy that insures the life of this key employee. Stephen paid Gecko Insurance CO. 1800 in return. Geck promises to pay Stephen 40,000 death benefit if this employee dies any time during the next 12 months. Fill out a Schedule C. Show calculations for shop rent and interest mortgage.