James Jones is the owner of a small retail business operated as a sole proprietorship. During...

James Jones is the owner of a small retail business operated as a sole proprietorship. During 2018, his business recorded the following items of income and expense.

Revenue from Inventory Sales $147,000

Cost of Goods Sold 33,500

Business License Tax 2,400

Rent on Retail Space 42,000

Supplies 15,000

Wages Paid to Employees 22,000

Payroll Taxes 1,700

Utilities 3,600

A.) Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2018 Form 1040. You mush show your work!

Expert Solution

Solution:

A. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2018 Form 1040

Schedule C net profit of $26,800 :

ekkarill92 answered 1 year ago

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