Comprehensive Problem 2 - Part 2: Schedule C for 2018

Note: This problem is divided into four parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form 1040. Some of the data information will be reproduced in the other parts for convenience.

Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount box does not require an entry or the answer is zero, enter "0". On Form SE, use rounded amounts in subsequent computations.

Information regarding (1) the business which Gregory operates and (2) Lulu's stock transactions are presented below.

1. The Rock Glen House B&B is operated as a sole proprietorship and had the following income and expenses for the year:

Room rental income	$138,000
Vending machine income	2,100
Advertising expense	4,810
Depreciation for book and tax purposes	18,100
Mortgage interest on the B&B	23,010
Wages of cleaning people	17,540
Taxes and licenses	6,420
Supplies consumed	18,870
Business insurance	6,300
Laundry expenses	4,289
Accounting fees	1,850
Office expenses	2,400
Utilities	6,350

All of the above amounts relate to the business portion of the Bed & Breakfast; the personal portion is accounted for separately. The Rock Glen House B&B uses the cash method of accounting and has no inventory. The employer tax ID number is 95-1234567.

2. Lulu has a stock portfolio. During the year she sold the following stock, for which she received 1099-B Forms, as follows:

	Orange Co.		Gold Co.	Green Co.
Sales price	$8,100		See Form	$1,450
Basis	3,800		1099-B	2,575
Date acquired	02/11/18			10/31/13
Date sold	06/19/18			10/23/18

NEED SCHEDULE C FOR 2018