Question

calculate the net loss or net profit based on the information for the year.

OME N Atte Sec . SCHEDULE C Profit or Loss From Business (Form 1040 or (Sole Proprietorship) 1040-SR) Go to www.lrs.gow Schedule for instructions and the latest information Department of the Treasury *Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Intemal Revenue Service Income 1 Gross recebe orales. Incons for line 1 and check the box this come was reported to you on Form W-2 and the Statutory employee" box on that form was 1 checked 2 Returns and allowances 2 3 Subtract line 2 from line 1 3 4 Cost of goods sold (from line 42) 4 5 Gross profit. Subtract line 4 from line 3 5 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income. Add lines 5 and 6. 7 Expenses. 8 Advertising..... 8 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) 20 Rent or lease (see instructions): 9 10 Commissions and foes a Vehicles, machinery, and equipment 10 11 Contract labor (see instructions) b Other business property 20a 12 11 Depletion 21 20b Repairs and maintenance 13 Depreciation and section 179 expense 12 22 Supplies (not included in Part III) 21 deduction (not included in Part II) 23 Taxes and licenses. 22 (see instructions) 24 Travel and meals: 23 14 Employee benefit programs (other than 13 a Travel on line 19) b Deductible meals (see instructions) 24a 15 Insurance (other than health) 16 Interest (see instructions): 14 25 Utilities a Mortgage (paid to banks, etc.) 15 26 Wages (less employment credits). 27a 24b b Other Other expenses (from line 48)..b Reserved for 25 17 Legal and professional services 16a future use. 26 16b 27a 17 27b Total Expenses Net Profit or Net Loss

Answer 1

Profit & loss Calculation 525 Point No. Income: 9 Sales 9 Cost of Goods Sold revenue Income $ $ 175 S 350 1 Tutoring Services Tutoring Services ubilled Other income $ 100,000 $ 600 2 $ 100,600 Gross Income $ 100,950

Gross Income $ 100,950 EXPENSES: 3 2,500 4 un $ $ $ $ $ 6 Assuming in Allowable limits as per Tax Rules 7 8 Office Rent Utilities Receptionist Salary Salary to himself Office Supplies Exp donation Automobile exp Depreciation of Office Eqips Personal Health Service cost for customer Advertisement Exp 1,800 5,000 25,000 3,000 1,000 1,090 500 009 11 12 $ $ $ $ $ $ Not Allowed 13 14 2,000 100 TOTAL EXPENSES $ 41,990 Profit/(Loss) $ 58,960