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Business, 06.06.2020 22:57 Sillydork4545

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 StatementScott Butterfield, CPAIncome Statement12/31/2017 Current Period Prior Period 1/1/2017 to 12/31/2017 1/1/2016 to 12/31/2016REVENUES Tax Services $75,067.00 $72,154.00 Accounting Services 48,860.00 50,256.00 Other Consulting Services 10,115.00 7,690.00 TOTAL REVENUES 134,042.00 130,100.00 COST OF SERVICES Salaries 30,100.00 29,400.00 Payroll Taxes 2,387.00 2,275.00 Supplies 1,548.00 1,225.00 TOTAL COST OF SERVICES 34,035.00 32,900.00 GROSS PROFIT (LOSS) 100,007.00 97,200.00 OPERATING EXPENSES Advertising and Promotion 350.00 – Business Licenses and Permits 250.00 250.00 Charitable Contributions 275.00 250.00 Continuing Education 300.00 – Dues and Subscriptions 3,500.00 3,500.00 Insurance 875.00 870.00 Meals and Entertainment 5,500.00 5,400.00 Office Expense 150.00 – Postage and Delivery 50.00 – Printing and Reproduction 100.00 – Office Rent 14,000.00 13,800.00 Travel 865.00 750.00 Utilities 2,978.00 2,724.00 TOTAL OPERATING EXPENSES 29,193.00 27,544.00 NET INCOME (LOSS) $70,814.00 $69,656.00 Scott also mentioned the following:A) The expenses for dues and subscriptions were his country club membership dues for the year. B) The charitable contributions were made to a political action committee. C) 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. D) Scott placed a business auto in service on January 1, 2014 and drove it 3,901 miles for business, 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. His wife has a car for personal use. Complete Schedule C for Scott showing Scott's net income 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.

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