Complete the reconciliation of book expenses to tax expenses. I was able to do e

Question

Complete the reconciliation of book expenses to tax expenses.

I was able to do everything else on my own exept the last part

thanks!!

Problem 3-1 (Algorithmic)
Schedule C (LO 3.1)

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, 2014 and drove it 6,667 miles for business, 4,000 miles for commuting, and 8,000 miles for nonbusiness purposes. His wife has a car for personal use.

Complete Schedule C for Scott showing Scott's net income from self-employment. Assume Scott has evidence to support his deductions. If required, only use the minus sign to indicate a net loss. When required, round amounts to the nearest dollar.

2017

Attachment
Sequence No. 09

Schedule C (Form 1040) 2017

I NEED HELP WITH THE FOLLOWING

Complete the reconciliation of book expenses to tax expenses.

Income Statement Scott Butterfield, CPA
Income Statement
12/31/2017
Current Period Prior Period 1/1/2017 to 12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $254,800 $72,154 Accounting Services 25,480 50,256 Other Consulting Services 56,056 7,690 TOTAL REVENUES 336,336 130,100 COST OF SERVICES Salaries 50,960 29,400 Payroll Taxes 2,387 2,275 Supplies 300 1,225 TOTAL COST OF SERVICES 53,647 32,900 GROSS PROFIT (LOSS) 282,689 97,200 OPERATING EXPENSES Advertising and Promotion 2,000 – Business Licenses and Permits 620 250 Charitable Contributions 400 250 Continuing Education 1,500 – Dues and Subscriptions 1,640 3,500 Insurance 15,288 870 Meals and Entertainment 11,466 5,400 Office Expense 5,096 – Postage and Delivery 85 – Printing and Reproduction 2,548 – Office Rent 7,644 13,800 Travel 10,192 750 Utilities 3,058 2,724 TOTAL OPERATING EXPENSES 61,537 27,544 NET INCOME (LOSS) $221,152 $69,656

Explanation / Answer

Statement showing reconcilation of book expenses to tax expenses:

Book Expenses (61,537 + 53,647) 115,184 Less: Expenses disallowed for tax Charitable Contibution (400) Dues & Subscription (1,640) Meals & Entertainment (5,733) Add: Additional expenses deducted for tax Car and Truck expenses 3,567 Total tax expenses 110,978

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