Question
The TPs sole proprietorship had the following revenues and expenses during 2022: Sales Revenue $485,000 Sales Returns $17,000 Cost of Goods Sold $161,000 Interest Expense
The TPs sole proprietorship had the following revenues and expenses during 2022:
Sales Revenue $485,000
Sales Returns $17,000
Cost of Goods Sold $161,000
Interest Expense on business loan $4,000
Car/Truck Expense (repairs, gas, oil, etc.) $8,300
Taxes and licenses $18,300
Depreciation $9,500
Utilities $3,500
Wages to sales staff $110,000
Fee paid to CPA for Schedule C $1,500
Based on the information contained in Question 2 above, the only correct entry for the TP to report based on the following choices would be:
$17,578 on Schedule 1, Line 12.
$10,731 on Schedule 1, Line 15.
$21,662 on Schedule SE, Line 13.
$10,731 on Schedule 2, Line 4.
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