Reference no: EM132624096

Complete Schedule C (Form 1040) based on the following scenario: Sophie Dubois (SSN: 117-00-2741) is self-employed as a motivational speaker. The office for her company, Dubois Drives, is located at 3671 Williamsburg Road. At the end of the year, she receives Form 1099-MISCs from the various colleges where she has worked instead of receiving Form W-2s. The total from all the 1099-MISC forms she received is $38,474 for the current tax year. In addition to speaking engagements, Sophie sells DVDs and CDs of her speeches. The income from this is $19,000, received through credit card sales.

Sophie's expenses include:

Advertising $ 1,050

Office supplies $ 235

Personal draw $14,000

Rent $9,000

Electricity $ 924

Travel (hotels) $3,246

Health insurance $ 2,460

Travel (meals) $ 692

Business license $ 120

Travel (airfare) $4,864

Sophie drove a total of 13,545 miles for the year. Included in this total were 721 commuting miles and 4,899 business miles. Sophie's car was placed in service on July 16, 2017. This is the only vehicle she owns. She has written proof of her mileage and will use the standard mileage rate. Answer the following questions based on the Schedule C (Form 1040) completed for Sophie Dubois:

Problem 1: Select the gross income:

a) $54,474

b) $57,474

c) $38,474

d) $43,474

Problem 2: Select the total expenses:

a) $22,455

b) $36,455

c) $22,801

d) $22,841

Problem 3: Select the net profit or (loss):

a) $34,673

b) $35,019

c) $21,019

d) $34,633