Question

In: Accounting

Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square...

Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square feet of his 2100 square-foot
rented loft exclusively and regularly for business, Blake used the cash accounting method and had the following income
and expenses for his financial planning business:
Gross receipt: $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 insurance (entire year): $1,055

Second phone line, exclusively for business: $103 .

Tax preparation (allocated to business): $350

Utilities (entire year): $2281.

Blake closed his business on April 1, 2018. He had no carryover losses and all assets were fully depreciated. lf Blake elects
to use the office-in-home (OlH) simplified method, what is the amount of his Schedule C net profit or loss?

A. $34,515; B. 34,818; C. 35153; D. 37,674

Expert Solution

Gross Receipts = 36960

Less Expenses

Advertising = 80

Business Insurance =9685

Business License = 100

Office Supplies = 76

Postage = 38

Telecommunication Expense = 103

Utilities = 240

Renter's Insurance = 88

Tax = 350

Health Insurance = 649

Total Expenses = 11409

Net Profit = Gross Receipts - Total Expenses= 36960 -11409 = 25551

ekkarill92 answered 2 years ago

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...

Blake operated as a sole proprietor reported on schedule he used 350 square feet of his...

Blake operated as a sole proprietor reported on schedule he used 350 square feet of his 2100 square feet rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business: gross receipts$3695 advertising$80 business Insurance$685 business license $100 comprehensive health insurance entire year$7788 office supplies$76 postage$38 rent entire year $14400 renters insurance$1055 second phone line exclusively for business$103 tax prep business$350 utilities entire year$2282. Blake closed...

A lot of small companies file their tax returns as a 1040 Sch C (Sole Proprietor)...

A lot of small companies file their tax returns as a 1040 Sch C (Sole Proprietor) Since corporate tax rates are lower than Individual tax rates, doesn't it make sense to create a corporation, and file your small business taxes as a corporation Form 1120? What are some of the issues and benefits of filing as a corporation instead of as an Individual? One solution that has been discussed is to create another tax rate for individuals who file their...

Which of the following expenses of a sole proprietor is not duducted on Schedule C? Advertising...

Which of the following expenses of a sole proprietor is not duducted on Schedule C? Advertising Work related education costs Liability and property insurance for the business Health insurance for the sole proprietor

Please complete just Form 1040 (you do not need to fill out a Schedule C or...

Please complete just Form 1040 (you do not need to fill out a Schedule C or Schedule D, but you can use them to calculate numbers to enter into Form 1040) for a client with the following tax situation: Paul Gigornovich Address: 123 HillCrest Lane, San Diego, CA 92101 Wage income: $45,000/00 W2 Federal Tax Withholdings: $4,000.00 Net Long Term Stock Sales Gain: $8,000.00 Net Short Term Sock Sale Loss: -$12,000.00 Sole Proprietorship Business Gross Income: $80,000.00 Expenses: Interest: $8,000.00...

I own a single-member LLC and file a Schedule C with my Form 1040 individual income...

I own a single-member LLC and file a Schedule C with my Form 1040 individual income tax return. My friend thinks it may be beneficial for me to form a S Corporation. 1. What is the main advantage of forming a S Corporation? 2. Is a S Corporation a pass-through/flow-through entity? 3. Would I still have to make estimated tax payments? 4. Would I still have to pay self-employment tax? 5. What is the self-employment tax rate? In 2017 my...

Complete the federal tax return below for 2016. Use Form 1040, Schedule A, Schedule B, and...

Complete the federal tax return below for 2016. Use Form 1040, Schedule A, Schedule B, and Form 2441 to complete this return. You can print these forms off of the IRS website by going to irs.gov and searching for the forms. Lucy and Ricky Van have one child, Leroy, who is 5 years old. The Vans reside at 1234 Huckleberry Street, Kathleen, GA 31047. Ricky’s Social Security number is 577-11-3322, Lucy’s is 477-98-4735, and Leroy’s is 589-22-1142. Lucy and Ricky’s...

Please answer in the following form: (1) 1040, (2) Schedule 1, (3) Schedule 2, (4) Schedule...

Please answer in the following form: (1) 1040, (2) Schedule 1, (3) Schedule 2, (4) Schedule A, (5) Schedule C page 1, (6) explanation (including calculation) for each line item on each form and schedule. Thank you. Janice Morgan, age 24, is single and has no dependents. Janice works as an employee from Worldwide Publishing and also as a freelance writer. In January 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called...

Please Complete the federal tax return below for 2016. Use Form 1040, Schedule A, Schedule B,...

Please Complete the federal tax return below for 2016. Use Form 1040, Schedule A, Schedule B, and Form 2441 to complete this return. You can print these forms off of the IRS website by going to irs.gov and searching for the forms. Take a screenshot of each form. Please only answer if you have the completed forms...........Lucy and Ricky Van have one child, Leroy, who is 5 years old. The Vans reside at 1234 Huckleberry Street, Kathleen, GA 31047. Ricky’s...

Please complete the 2019 Form 1040 (Stop after completing Line 12a), Schedule-1 and Schedule A for...

Please complete the 2019 Form 1040 (Stop after completing Line 12a), Schedule-1 and Schedule A for the taxpayer: Julie Anderson is a single parent and lives with her dependent daughter Alice who is 17-years old. Julie is a project manager and her W-2 wage is $75,200. Julie's father passed away on April 14. She inherited cash of $50,000 from her father and his baseball card collection, valued at $2,000. Every year she also receives interest income from a trust fund,...