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INCOME TAX RETURN PROBLEM Below is the taxpayer information for Beverly Johnson: ...

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Accounting

INCOME TAX RETURN PROBLEM

Below is the taxpayer information for Beverly Johnson:

Beverly (SS# 138-09-1983, date of birth: April 2, 1985) is a self-employed consultant whose business uses the accrual method of accounting. Her principal business code is 540700. Her business is located at 1501 Broadway, New York, N.Y., 10019. During the year, she had the following income and expense items:

Income

Professional Fees Earned $200,000

Expenses

Office Expenses $ 5,413

Depreciation $ 15,250

Rent on Office Space $ 20,500

Advertising $ 7,577

Malpractice Insurance $ 6,000

Utilities $ 5,850

Travel (1,250 business miles driven) ?

Lodgings Hotels for business travel $600

Taxes & Licenses $5,500

Salary for her bookkeeper $15,550

Meals with clients $ 10,050

Meals with friends $3,500

Supplies $ 5,600

Accounting Fees $9,950

Legal Fees $10,250

Interest on Bank Loan $4,550

Cellphone for biz usage $1,500

Suits/Uniform $2,800

REQUIRED:

Please prepare the 2020 Schedule C (see attachment) for Beverly Johnson. Round up amounts to the nearest dollar, if necessary. Use the 2020 tax rules.

Please make sure the answer is correct.

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