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Comprehensive Problem 1 - Part 2: Schedule C, Schedule SE, Schedule D, and Qualified Dividends and Capital Gains Tax Worksheet

Note: This problem is divided into three parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form 1040. Some of the data information will be reproduced in the other parts for convenience.

Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount box does not require an entry or the answer is zero, enter "0". On Schedule SE, when required, round amounts to the nearest dollar. Use the rounded amounts in subsequent computations.

Information regarding Noah's pet store business is reproduced here. Noah's pet store is located at 1415 S. Patterson Blvd, Dayton, OH 45409. The name of the store is "The Arc," and its taxpayer identification number is 95-9876556. Since you handle Noah's bookkeeping, you have printed the income statement from your Quickbooks software, shown in the table below.

The Arc 95-9876556 Income Statement For the Year Ended December 31, 2022
Revenue:
	Gross Sales		$150,000.00
	Less: Sales Returns and Allowances		-
	Net Sales		$150,000.00
Cost of Goods Sold:
	Beginning Inventory	$11,000.00
	Add: Purchases	66,000.00
		$77,000.00
	Less: Ending Inventory	10,000.00
	Cost of Goods Sold		67,000.00
	Gross Profit (Loss)		$83,000.00
Expenses:
	Dues and Subscriptions	-
	Estimated Federal Tax Payments	4,000.00
	Estimated State Tax Payments	3,800.00
	Insurance	4,000.00
	Meals and Entertainment	1,600.00
	Miscellaneous	300.00
	Payroll Taxes	4,000.00
	Professional Fees	1,800.00
	Rent	8,500.00
	Travel	1,300.00
	Utilities	1,500.00
	Vehicle Expenses	-
	Wages	25,000.00
	Total Expenses		55,800.00
	Net Operating Income		$27,200.00

Details of The Arc's meals and entertainment:

$500	Restaurant meals associated with business travel
300	Arc employee holiday party
200	Restaurant overtime meals for employees
600	Sports tickets for entertaining large customers
$1,600