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bruce operated as a sole proprietor, reported on schedule c (form 1040). he used 350 square...

bruce operated as a sole proprietor, reported on schedule c (form 1040). he used 350 square feet of his 2,100 square foot rented loft exclusively and regularly for business. blake used the cash accounting method and had the following income and expenses for this financial planning business

gross receipts 36,960

expenses

advertising 80

business insurance 685

business license 100

comprehensive health insurance (entire year) 7,788

office supplies 76

postage 38

rent (entire Year) 14,400

renter's insurance (entire year) 1055

second phone line exclusively for business 103

tax preparation (allocated to business) 350

Utilities (entire year) 2881

Blake closed his business on April 2018. He had no carry over losses and all assets were fully depreciated. If blake elects to use the office-in-home (OIH) simplified method what is the amount of his schedule c net profit or loss?

34515

34,818

37,674

Solutions

Expert Solution

Gross Receipts = 36960

Less Expenses

Advertising = 80

Business Insurance = 685

Business License = 100

Office Supplies = 76

Postage = 38

Telecommunication Expense = 103

Utilities = 240

Renter's Insurance = 88

Tax = 350

Health Insurance = 649

Total Expenses = 2409

Net Profit = Gross Receipts - Total Expenses= 36960 - 2409 = 34551

ekkarill92 answered 1 year ago

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