Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2019: Gross receipts$203,000 Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2019 Van (over 6,000 lbs) placed in service 1/01/19, cost 27,000 Postage (500)Wages (26,000)Payroll taxes (1,950)Supplies (12,500)Phone (1,250)Internet service (600)Rent (2,400)Insurance (2,800)Van expenses (4,500) Business assetsDate PurchasedCostComputer 15/18/19$2,200 Computer 26/01/19 2,700 Printer3/01/18 900 Copier3/02/18 2,100 Furniture3/01/18 6,000 Required:Determine Cassi’s self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. § 179 expense is elected on all eligible assets (§ 179 was not taken on assets purchased last year). (Use Table 6A-1)(Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar.)

As per Sec 179, 100% deduction can be taken on assets that are purchased in the current year.…

Answered: 7,000 (miles incurred ratably…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2019:


Gross receipts	$	203,000
Business mileage: 27,000 (miles incurred ratably throughout
the year) 35,000 miles total during the year 2019
Van (over 6,000 lbs) placed in service 1/01/19, cost 27,000
Postage		(500	)
Wages		(26,000	)
Payroll taxes		(1,950	)
Supplies		(12,500	)
Phone		(1,250	)
Internet service		(600	)
Rent		(2,400	)
Insurance		(2,800	)
Van expenses		(4,500	)

Business assets	Date Purchased	Cost
Computer 1	5/18/19	$	2,200
Computer 2	6/01/19		2,700
Printer	3/01/18		900
Copier	3/02/18		2,100
Furniture	3/01/18		6,000

Required:

Determine Cassi’s self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. § 179 expense is elected on all eligible assets (§ 179 was not taken on assets purchased last year). (Use Table 6A-1)
(Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar.)

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