Schedule C $($LO $3\mathrm{.}1,3\mathrm{.}3,3\mathrm{.}5,3\mathrm{.}7)$

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

$12/31/2022$

Current Period Prior Period

$1/1/2022$ to $12/31/20221/1/2021$ to $12/31/2021$

REVENUES

Tax Services $$76,124$ $$75,067$

Accounting Services $49,08148,860$

Other Consulting Services $10,09510,115$

TOTAL REVENUES $135,300134,042$

COST OF SERVICES

Salaries $35,00030,100$

Payroll Taxes $3,0982,387$

Supplies $1,3021,548$

TOTAL COST OF SERVICES $39,40034,035$

GROSS PROFIT $($LOSS$)95,900100,007$

OPERATING EXPENSES

Advertising and Promotion $250350$

Business Licenses and Permits $300250$

Charitable Contributions $400275$

Continuing Education $500300$

Dues and Subscriptions $2,8003,500$

Insurance $900875$

Meals and Entertainment $4,4005,500$

Office Expense $200150$

Postage and Delivery $10050$

Printing and Reproduction $50100$

Office Rent $12,00014,000$

Travel $900865$

Utilities $3,0002,978$

TOTAL OPERATING EXPENSES $25,80029,193$

NET INCOME $($LOSS$)$ $$70,100$ $$70,814$

Scott also mentioned the following:

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

$$400$ of the charitable contributions 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 $1,2019$ and drove it $4,000$ miles for business $($equally over the course of the year$),3,250$ miles for commuting, and $4,500$ miles for nonbusiness purposes. No business expenses for the car are included above. Scott wishes to use the standard mileage method. His wife has a car for personal use.

Meals and Entertainment expense includes $$2,500$ related to golf greens fees for entertaining clients, $$1,000$ for business meals provided by restaurants, and $$900$ for the bagels and doughnuts once a month for all employees.

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.