Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott’s CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year shows the following: 

Scott also mentioned the following: 

• The expenses for dues and subscriptions were his country club membership dues for the year. 
• The charitable contributions were made to a political action committee. 
• Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold. 
• Scott placed a business auto in service on January 1, 2015 and drove it 3,829 miles for business, 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. His wife has a car for personal use. Complete Schedule C on Pages 3-41 and 3-42 for Scott showing Scott’s net income from self-employment.

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Income Statement Scott Butterfield, CPA Income Statement 12/31/2018 Current Period Prior Period 1/1/2018 to 12/31/2018 1/1/2017 to 12/31/2017 REVENUES 75,067.00 Tax Services 72,154.00 Accounting Services Other Consulting Services 48,860.00 10,115.00 134,042.00 50,256.00 7,690.00 TOTAL REVENUES 130,100.00 COST OF SERVICES Salaries 29,400.00 30,100.00 Payroll Taxes 2,387.00 2,275.00 Supplies TOTAL COST OF SERVICES 1,548.00 34,035.00 1,225.00 32,900.00 100,007.00 GROSS PROFIT (LOSS) 97,200.00 OPERATING EXPENSES 350.00 Advertising and Promotion Business Licenses and Permits 250.00 250.00 250.00 Charitable Contributions 275.00 Continuing Education Dues and Subscriptions 300.00 3,500.00 3,500.00 Insurance 875.00 870.00 Meals 5,500.00 5,400.00 Office Expense 150.00 Postage and Delivery Printing and Reproduction Office Rent 50.00 100.00 14,000.00 865.00 13,800.00 Travel 750.00 Utilities 2,978.00 29,193.00 2,724.00 TOTAL OPERATING EXPENSES 27,544.00 NET INCOME (LOS) 70,814.00 69,656.00