oss receipts siness mileage: 27,000 (miles incurred ratably throughout the year) 35,000 iles total during the year 2020 an (over 6,000 pounds) placed in service 1/01/2020, cost 27,000 stage ges roll taxes pplies one ternet service ht surance nexpenses siness assets mputer 1 mputer 2 Enter bier niture Date Purchased 5/18/20 6/01/20 3/01/19 3/02/19 3/01/19 Cost $ 2,200 2,700 900 2,100 6,000 $ 203,000 (500) (26,000) (1,950) (12,500) (1,250) (600) (2,400) (2,800) (4,500) uired: ermine Cassi's self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. § 179 expense is elected on all ible assets (§ 179 was not taken on assets purchased last year). (Use Table 6A-1) (Input all the values as positive numbers. Use nded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole ar. Instructions can be found on certain cells within the forms.)

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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Subject: Accounting 

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 2020:
Gross receipts
Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000
miles total during the year 2020
Van (over 6,000 pounds) placed in service 1/01/2020, cost 27,000
Postage
Wages
Payroll taxes
Supplies
Phone
Internet service.
Rent
Insurance
Van expenses
Business assets
Computer 1
Computer 2
Printer
Copier
Furniture
Date Purchased
5/18/20
6/01/20
3/01/19
3/02/19
3/01/19
Cost
$ 2,200
2,700
900
2,100
6,000
$ 203,000
(500)
(26,000)
(1,950)
(12,500)
(1,250)
(600)
(2,400)
(2,800)
(4,500)
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. Instructions can be found on certain cells within the forms.)
Transcribed Image Text: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 2020: Gross receipts Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2020 Van (over 6,000 pounds) placed in service 1/01/2020, cost 27,000 Postage Wages Payroll taxes Supplies Phone Internet service. Rent Insurance Van expenses Business assets Computer 1 Computer 2 Printer Copier Furniture Date Purchased 5/18/20 6/01/20 3/01/19 3/02/19 3/01/19 Cost $ 2,200 2,700 900 2,100 6,000 $ 203,000 (500) (26,000) (1,950) (12,500) (1,250) (600) (2,400) (2,800) (4,500) 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. Instructions can be found on certain cells within the forms.)
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