Taylor Kelley is a self employed consultant with a specialty in the implementation of in the cloud computing services. When she began her consulting business back in 2018, she set up a single member LLC called Kelley Consulting LLC. As you know, a single member LLC files a tax return as if they were a sole proprietorship. During 2020, Taylor spend 32 weeks on the road away from her home office located in Naples, Florida. During that time she worked on 10 different assignments, all of which were temporary in nature. No client assignment lasted for more than six weeks. She used her automobile frequently (2020 Mercedes S Class!) in traveling to client locations. Kelley Consulting has no employees but Taylor is considering hiring 2-3 consultants at some point in 2021. Taylor has hired you to provide her with the information needed to complete her Schedule C for 2020. As you know, a Schedule C is a Profit and Loss statement for a sole proprietorship. Taylor realizes that the tax deadline is quickly approaching (May 17th) and will pay you a premium for helping her file on time.Taylor has provided you the following summary of her business cash account activity for 2020.

Kelley Consulting LLCStatement of Cash ActivityYear Ending December 31, 2020Cash collected:For 2020 services rendered426,502 For 2021 services to be rendered145,201 Loan from bank250,000 PPP loan from the federal government150,000 Loan from Taylor Kelley100,000 Total cash collected in 20201,071,703 Cash paid out:Airfare to client locations75,250 Meals at client locations4,250 Business entertainment1,520 Automobile expenses7,500 Consultants 100,000 Down payment on a new beach house250,000 Rent for Naples, FLA office36,000 Utilities at Naples FLA office5,000 Office expenses - Naples FLA office2,500 Continuing education seminars sponsored by Microsoft3,500 Loan repayments to bank50,000

Vacation trip to Disneyworld with family10,000 Interest on bank loan10,000 New golf clubs1,000 Loan repayment to Taylor Kelley25,000 Cash distributions to Taylor Kelley250,000 Total cash paid out831,520 Increase in cash during 2020240,183 Cash balance at 1/1/2025,250 Cash balance at 12/31/20265,433 As noted above, Taylor drove her automobile to many of her client assignments. She kept a meticulous travel log which showed that she drove a total of 50,000 miles during 2020, of which 42,750 were for business. She has indicated that depreciation on her vehicle is computed at $10,100.Taylor would like to establish a SEP retirement plan. She realizes that it must be funded by the due date of her tax return (May 17, 2021) and would like to know how much she can contribute to the plan for the 2020 tax year. Required1. Complete a profit and loss statement for Kelley Consulting LLC that Taylor can use to complete her Schedule C for 2020. 2. What is the maximum amount Taylor can contribute to her SEP retirement plan?