Purdue MGMT 504 Homework: Schedule C Form 1040 for Carpet Plus

This document presents a completed Schedule C (Form 1040) for Carpet Plus, a sole proprietorship owned by Isaac, prepared as part of a Purdue University MGMT 504 homework assignment. The Schedule C details the profit or loss from Isaac's carpet business, which includes sales, installation, and cleaning services. The assignment uses the accrual method of accounting and covers various income and expense items such as gross receipts, returns and allowances, cost of goods sold, advertising, car and truck expenses, commissions, contract labor, depreciation, employee benefits, insurance, interest, legal and professional services, office expenses, pension plans, rent/lease, repairs and maintenance, supplies, taxes and licenses, travel and meals, utilities, and wages. The completed form calculates the gross profit, total expenses, and ultimately the net profit or loss for the business. Desklib provides this and other solved assignments to aid students in their studies.

SCHEDULE C Profit or Loss From Business OMB No. 1545-0074
(Form 1040) (Sole Proprietorship) 2018Department of the Treasury ▶ Go to www.irs.gov/ScheduleC for instructions and the latest information. Attachment
Internal Revenue Service (99) ▶ Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09
Name of proprietor Social security number (SSN)
A Principal business or profession, including product or service (see instructions) B Enter code from instructions
Carpet ▶ 3 1 4 0 0 0
C Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.)
Carpet Plus
E Business address (including suite or room no.) ▶
City, town or post office, state, and ZIP code
F Accounting method: (1) Cash (2) X Accrual (3) Other (specify) ▶
G Did you “materially participate” in the operation of this business during 2018? If “No,” see instructions for limit on losses .
H If you started or acquired this business during 2018, check here . . . . . . . . . . . . . . . . . ▶
I Did you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) . . . . . . . .
J If “Yes,” did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . .
x Yes NoX Yes
() Yes (X) No
() Yes () No
Part I Income
1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on 300000
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . ▶ 1
2 Returns and allowances. . . . . . . . . . . . . . . . . . . . . . . . . 2 10000
3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3 290000
4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . 4 100000
5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . 5 190000
6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . 6 13000
7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . ▶ 7 103000
Part II Expenses. Enter expenses for business use of your home only on line 30.
8 Advertising . . . . . 8 0 18 Office expense (see instructions) 18
9 Car and truck expenses (see 19 Pension and profit-sharing plans . 19
instructions) . . . . . 9 150 20 Rent or lease (see instructions):
10 Commissions and fees . 10 0 a Vehicles, machinery, and equipment 20a 3000
11 Contract labor (see instructions) 11 b Other business property . . . 20b 7000
12 Depletion . . . . . 12 21 Repairs and maintenance . . . 21 1000
13 Depreciation and section 179 22 Supplies (not included in Part III) . 22
expense deduction (not
23 Taxes and licenses . . . . . 23included in Part III) (see 6500
instructions) . . . . . 13 24 Travel and meals:
14 Employee benefit programs 5000 a Travel . . . . . . . . . 24a 730
(other than on line 19) . . 14 b Deductible meals (see
15 Insurance (other than health) 15 600 instructions) . . . . . . . 24b 1750
16 Interest (see instructions): 25 Utilities . . . . . . . . 25
a Mortgage (paid to banks, etc.) 16a 0 26 Wages (less employment credits) . 26 10000
b Other . . . . . . 16b 27a Other expenses (from line 48) . . 27a
17 Legal and professional services 17 b Reserved for future use . . . 27b
28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . ▶ 28 35730
29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . 29 67270
30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method (see instructions).
Simplified method filers only: enter the total square footage of: (a) your home:
and (b) the part of your home used for business: . Use the Simplified
Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . 30
31 Net profit or (loss). Subtract line 30 from line 29.
}
• If a profit, enter on both Schedule 1 (Form 1040), line 12 (or Form 1040NR, line 13) and on Schedule SE, 67270
line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 31
• If a loss, you must go to line 32.
}
32 If you have a loss, check the box that describes your investment in this activity (see instructions).
• If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 12 (or Form 1040NR, 32a All investment is at risk.line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). 32b Some investment is not
Estates and trusts, enter on Form 1041, line 3. at risk.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2018

Schedule C (Form 1040) 2018 Page 2
Part III Cost of Goods Sold (see instructions)
33 Method(s) used to
value closing inventory: A
X
Cost b Lower of cost or market c Other (attach explanation)
34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . (x)Yes No
35 Inventory at beginning of year. If different from last year’s closing inventory, attach explanation . . . 35
100
000
0
36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36 4900
37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37 0
38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38 0
39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
60
00
40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40
11
09
00
41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41 60000
42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42
50
90
0
Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must
file Form 4562.
43 When did you place your vehicle in service for business purposes? (month, day, year) ▶ / /
44 Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for:
a Business12956 b Commuting (see instructions) c Other 524
45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . .X Yes No
46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No
47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No
b If “Yes,” is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
Part V Other Expenses. List below business expenses not included on lines 8–26 or line 30.

48 Total other expenses. Enter here and on line 27a . . . . . . . . . . . . . . . . 48
Schedule C (Form 1040) 2018