Problem 3 1 (Algorithmic) Schedule C (LO 3 1, 3 3, 3 5, 3 7) Scott Butterfield 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 Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860 Scott's income statement for the year shows the following Income Statement Scott Butterfield, CPA Income Statement 12 31 2020 Current Period Prior Period 1 1 2020 to 12 31 2020 1 1 2019 to 12 31 2019 REVENUES Tax Services $283,600 $72,154 Accounting Services 28,360 50,256 Other Consulting Services 62,392 7,690 TOTAL REVENUES 374,352 130,100 COST OF SERVICES Salaries 56,720 29,400 Payroll Taxes 2,387 2,275 Supplies 300 1,225 TOTAL COST OF SERVICES 59,407 32,900 GROSS PROFIT (LOSS) 314,945 97,200 OPERATING EXPENSES Advertising and Promotion 2,000 Business Licenses and Permits 620 250 Charitable Contributions 450 250 Continuing Education 1,500 Dues and Subscriptions 1,640 3,500 Insurance 17,016 870 Meals and Entertainment 12,762 5,400 Office Expense 5,672 Postage and Delivery 85 Printing and Reproduction 2,836 Office Rent 8,508 13,800 Travel 11,344 750 Utilities 3,403 2,724 TOTAL OPERATING EXPENSES 67,786 27,544 NET INCOME (LOSS) $247,159 $69,656 Scott also mentioned the following The expenses for dues and subscriptions were his country club membership dues for the year Of the charitable contributions, $50 were made to a political action committee Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold Scott placed a business auto in service on January 1, 2017 and drove it 6,904 miles for business, 4,142 miles for commuting, and 8,285 miles for nonbusiness purposes His wife has a car for personal use Complete Schedule C for Scott showing Scott's net taxable profit from self employment Assume Scott has evidence to support his deductions If required, only use the minus sign to indicate a net loss When required, round amounts to the nearest dollar E How much are the taxes and fees Please explain

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Problem 3-1 (Algorithmic) Schedule C (LO 3.1, 3.3, 3.5, 3.7) Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and

Problem 3-1 (Algorithmic) Schedule C (LO 3.1, 3.3, 3.5, 3.7)

Scott Butterfield 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. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott's income statement for the year shows the following:

Income Statement
Scott Butterfield, CPA Income Statement 12/31/2020
	Current Period	Prior Period
	1/1/2020 to 12/31/2020	1/1/2019 to 12/31/2019
REVENUES
Tax Services	$283,600	$72,154
Accounting Services	28,360	50,256
Other Consulting Services	62,392	7,690
TOTAL REVENUES	374,352	130,100
COST OF SERVICES
Salaries	56,720	29,400
Payroll Taxes	2,387	2,275
Supplies	300	1,225
TOTAL COST OF SERVICES	59,407	32,900
GROSS PROFIT (LOSS)	314,945	97,200
OPERATING EXPENSES
Advertising and Promotion	2,000
Business Licenses and Permits	620	250
Charitable Contributions	450	250
Continuing Education	1,500
Dues and Subscriptions	1,640	3,500
Insurance	17,016	870
Meals and Entertainment	12,762	5,400
Office Expense	5,672
Postage and Delivery	85
Printing and Reproduction	2,836
Office Rent	8,508	13,800
Travel	11,344	750
Utilities	3,403	2,724
TOTAL OPERATING EXPENSES	67,786	27,544

NET INCOME (LOSS)	$247,159	$69,656

Scott also mentioned the following:

The expenses for dues and subscriptions were his country club membership dues for the year.
Of the charitable contributions, $50 were made to a political action committee.
Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold.
Scott placed a business auto in service on January 1, 2017 and drove it 6,904 miles for business, 4,142 miles for commuting, and 8,285 miles for nonbusiness purposes. His wife has a car for personal use.

Complete Schedule C for Scott showing Scott's net taxable profit from self-employment. Assume Scott has evidence to support his deductions. If required, only use the minus sign to indicate a net loss. When required, round amounts to the nearest dollar.