Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. Sherry keeps her books on an accrual basis.

Sherrys bookkeeper has provided the following book-basis fixed asset rollforward: Hopson Retail Fixed Asset Rollforward 12/31/2017 (book basis)

Sherrys bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2017.

Required: Complete Sherry's Schedule C and Form 4562.

Make realistic assumptions about any missing data.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter "0".

If required round any dollar amount to the nearest dollar.

Click here to access the depreciation table to use for this problem.

Gross sales $351,700 Returns and allowances 4,000 Expenses Beginning inventory (at cost) Add: purchases Cost of gaads available for sale Less: ending inventory (at cost) Cost of gaads sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising 84,300 100,700 185,000 75,000 $110,000 23,800 1,500 2,800 37,200 3,440 1,850 750 2,100 Gross sales $351,700 Returns and allowances 4,000 Expenses Beginning inventory (at cost) Add: purchases Cost of gaads available for sale Less: ending inventory (at cost) Cost of gaads sold Rent Insurance Legal and accounting fees Payroll Payroll taxes Utilities Office supplies Advertising 84,300 100,700 185,000 75,000 $110,000 23,800 1,500 2,800 37,200 3,440 1,850 750 2,100