- 50 - Federal Income Tax Returns Petitioners’ 1994 Federal Income Tax Return Petitioners filed Form 1040, U.S. Individual Income Tax Return for 1994 (petitioners’ 1994 joint return), which they signed on March 10, 1995. In that return, petitioners reported taxable income of $837,210. Such taxable income did not include any wages or salaries. Petitioners’ 1994 joint return included Schedule C, Profit or Loss From Business (1994 Schedule C). The 1994 Schedule C requested, and petitioners provided, inter alia, the following information: Information Requested Information Provided Name of proprietor Marvin L. Barmes Principal business or profession, includ- ing product or service Retail and wholesale, general merchandise Business name Barbara’s Gift Shop and Barmes Wholesale Employer identification number (EIN) 35-1305131 Business address 120 Main St, Vincennes, IN 47591 Accounting method Accrual Method used to value closing inventory Cost Gross receipts or sales (gross receipts) $5,445,178 Returns and allowances 370 Cost of goods sold 2,820,049 Gross profit 2,624,759 Other income 106,567 Gross income 2,731,326 Total expenses 1,871,671 Expenses for business use of your home 0 Net profit or (loss) 859,655 Inventory at beginning of year 411,442 Purchases less cost of items withdrawn for personal use 2,850,804 Cost of labor 0 Materials and supplies 0 Inventory at end of year 442,197Page: Previous 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Next
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