Randolph Scott operates a business as a sole proprietorship.This year his net profit was $10,570.For tax purposes this amount should be reported on:
A)Schedule C,Statement of Profit or Loss from Business
B)The first page of Form 1040 as other income
C)A separate tax return prepared for the business operation
D)Schedule E,Statement of Rent and Royalty Income

Question

Quizplus · Accepted Answer

A sole proprietorship's net profit is reported on Schedule C, which is used to report income or loss from a business operated by an individual.

Randolph Scott Operates a Business as a Sole Proprietorship