Mary Amoth has now started a business. She has named her business Mary’s Crafts – Made to Order. It is a SMLLC. 

• See excel schedule(below) for activity from Mary’s Crafts – Made to Order. Please review the income and expenses and other details and include the activity in the Amoth’s return.

 

Tax Implications on a personal 1040 for the following business transactions:

Mary's Crafts - Made to Order
Summary of Activity
For the year ended December 31, 2020
Business started 2/1/20					DR (CR)
Sales Revenue					(850,000)
Cost of Goods Sold (based on Purchases for the year)					475,000
Salary and wages - paid to others					175,000
Rent					45,000
Utilities					10,000
Telephone					6,700
Advertising					3,000
Entertainment					5,500
Contributions to State Senate's Campaign					5,000
Meals					15,000
Accounting and Legal Fees					40,000		review of other businesses
							Dec-20
Note the accounting and legal fees includes:
$10,000 related to the purchase of another craft business and $15,000 to
look into a restaurant that was not successful.