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 12/31/2019 Current Period Prior Period 1/1/2019 to 12/31/2019 1/1/2018 to 12/31/2018 $76,123.00 49,001.00 10,095.00 135,219.00 $75,067.00 48,860.00 10,115.00 134,042.00 32,000.00 2,868.00 1,391.00 36,259.00 98,960.00 30,100.00 2,387.00 1,548.00 34,035.00 100,007.00 REVENUES Tax Services Accounting Services Other Consulting Services TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Supplies TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Business Licenses and Permits Charitable Contributions Continuing Education Dues and Subscriptions Insurance Meals and Entertainment Office Expense Postage and Delivery Printing and Reproduction Office Rent Travel Utilities 300.00 250.00 425.00 300.00 3,500.00 875.00 4,400.00 150.00 50.00 100.00 14,000.00 865.00 2,978.00 28,193.00 350.00 250.00 275.00 300.00 3,500.00 875.00 5,500.00 150.00 50.00 100.00 14,000.00 865.00 2,978.00 29,193.00 TOTAL OPERATING EXPENSES NET INCOME (LOSS) $70,767.00 $70,814.00 Scott 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. 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, 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. He maintains written records for the business use of the car. Complete Schedule 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, roupid amounts to the nearest dollar. 7 135,219 7 Gross income. Add lines 5 and 6.. 18 150 X 19 20a 20b 14,000 21 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 300 18 Office expense (see instructions).. 9 Car and truck expenses (see 19 Pension and profit-sharing plans.... instructions). 9 2,029 X 20 Rent or lease (see instructions): ..... 10 Commissions and fees... 10 a Vehicles, machinery, and equipment... 11 Contract labor (see instructions) 11 b Other business property ....... 12 Depletion.. 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part III)... expense deduction (not included 23 Taxes and licenses In Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel (other than on line 19).... b Deductible meals 15 Insurance (other than health) 875 (see Instructions).... 16 Interest (see instructions): 25 Utilities 22 1,391 23 3,118 24a 865 14 15 24b 2,200 25 2,978 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits).... 26 32,000 b Other 16b 27a Other expenses (from line 48) 27a 425 X 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 60,331 X 29 Tentative profit or loss). Subtract line 28 from line 7.. 29 74,888 X If "Yes," is the evidence written? Tes y Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. Charitable contributions 125 Continuing education 300 Not applicable x 48 Total other expenses. Enter here and on line 27a 48 425 x Schedule C (Form 1040 or 1040-SR) 2019 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 12/31/2019 Current Period Prior Period 1/1/2019 to 12/31/2019 1/1/2018 to 12/31/2018 $76,123.00 49,001.00 10,095.00 135,219.00 $75,067.00 48,860.00 10,115.00 134,042.00 32,000.00 2,868.00 1,391.00 36,259.00 98,960.00 30,100.00 2,387.00 1,548.00 34,035.00 100,007.00 REVENUES Tax Services Accounting Services Other Consulting Services TOTAL REVENUES COST OF SERVICES Salaries Payroll Taxes Supplies TOTAL COST OF SERVICES GROSS PROFIT (LOSS) OPERATING EXPENSES Advertising and Promotion Business Licenses and Permits Charitable Contributions Continuing Education Dues and Subscriptions Insurance Meals and Entertainment Office Expense Postage and Delivery Printing and Reproduction Office Rent Travel Utilities 300.00 250.00 425.00 300.00 3,500.00 875.00 4,400.00 150.00 50.00 100.00 14,000.00 865.00 2,978.00 28,193.00 350.00 250.00 275.00 300.00 3,500.00 875.00 5,500.00 150.00 50.00 100.00 14,000.00 865.00 2,978.00 29,193.00 TOTAL OPERATING EXPENSES NET INCOME (LOSS) $70,767.00 $70,814.00 Scott 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. 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, 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. He maintains written records for the business use of the car. Complete Schedule 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, roupid amounts to the nearest dollar. 7 135,219 7 Gross income. Add lines 5 and 6.. 18 150 X 19 20a 20b 14,000 21 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 300 18 Office expense (see instructions).. 9 Car and truck expenses (see 19 Pension and profit-sharing plans.... instructions). 9 2,029 X 20 Rent or lease (see instructions): ..... 10 Commissions and fees... 10 a Vehicles, machinery, and equipment... 11 Contract labor (see instructions) 11 b Other business property ....... 12 Depletion.. 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part III)... expense deduction (not included 23 Taxes and licenses In Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel (other than on line 19).... b Deductible meals 15 Insurance (other than health) 875 (see Instructions).... 16 Interest (see instructions): 25 Utilities 22 1,391 23 3,118 24a 865 14 15 24b 2,200 25 2,978 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits).... 26 32,000 b Other 16b 27a Other expenses (from line 48) 27a 425 X 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 60,331 X 29 Tentative profit or loss). Subtract line 28 from line 7.. 29 74,888 X If "Yes," is the evidence written? Tes y Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. Charitable contributions 125 Continuing education 300 Not applicable x 48 Total other expenses. Enter here and on line 27a 48 425 x Schedule C (Form 1040 or 1040-SR) 2019