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Equipment $ 45,000 Furniture & Fixtures $ 10,500 Computer Equipment $ 11,750 Although Bruce planned on a grand opening on July 01, 2017, the...

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Complete schedule C for 2017 tax return


Equipment $ 45,000
Furniture ‘5: Fixtures $ 10,500
Computer Equipment 5 11,750 Although Bruce planned on a grand opening on July 01, 2017, the construction
was not completed until July 21, 201?, causing Bruce to delay the grand opening until August 01, 201?. On August 01, 201?, Bruce purchased a new truck for $24,000, which weighs
9,350 pounds, to be used 100% in the business for pickups and deliveries. Bruce planned to finance the new business with the $100,000 inheritance he
received on 0310112017, fiom his late father’s estate. Bruce also planned to use $50,000
of savings he had invested with Madoff Investment Securities (IVES) but learned on
312912012, that his entire savings was lost as a result of a massive ponzi scheme. In order to come up with the additional fimds needed to finance the construction, equipment, and
inventory, Bruce’s grandfather loaned him $50,000 on 0511512017. On December 25, 2017, Bruce received a letter fi'om his grandfather stating that he forgives the entire
$50,000 loan effectively immediately. For 201?, the bike shop generated the following revenues and incurred the following
expenses: Sales, Rental, 3:; Service Revenue $ 245,000.00
Inventory purchased 105,000.00
Inventory on hand at December 31, 2017 65,000.00
Rent from (August 01 — December 31, 2017) 50,000.00
Salaries 25,000.00
Supplies 10,000.00
Utilities 9,000.00
Promotional expense 5,500.00
Travel to Trade Shows 1,500.00
Meals db Entertainment 1,200.00
Postage and Delivery 1,050.00
Telephone 1,350.00
Attorney fees 5,000.00
Pre-startup investigative expense 55,200.00 Other relevant information: ' Bruce has decided that he wants to minimize his tax as much as legally
possible and has requested your assistance in preparing his 2015Ir Federal
incometaxreturn. " Bruce has asked you to depreciate as much of the capital expenditures as legally possible, but only wants to use IRC Sec 129 expense on the

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