- 8 - Gross receipts or sales $1,056,833 Less returns and allowances 8,802 Balance 1,048,031 Cost of goods sold: Inventory at beginning of year $12,551 Purchases 575,317 Cost of labor 203,661 Other costs: Cash (over/under) $1,680 Operating supplies 29,077 Program costs 13,026 Total other costs 43,783 43,783 Inventory at end of year of year -0- Total cost of goods sold 835,312 835,312 Gross profit 212,719 Deductions: Compensation of officers 14,914 Salaries and wages 44,799 Repairs and maintenance 1,456 Rents 25,161 Taxes and licenses 28,201 Depreciation 8,409 Advertising 200 Employee benefit programs 24,453 Other deductions: Accounting 5,086 Auto and truck 308 Bank charges 1,097 Computer expense 961 Dues and subscriptions 20 Employee development training 1,940 Insurance 7,727 Internet service provider 2,238 Janitorial 1,409 Laundry and cleaning 105 Legal and professional 5,500 Meals and entertainment 402 Miscellaneous 269 Office expense 4,533 Outside services 4,421 Parking and toll 120 Security 2,185 Supplies 660 Telephone 7,870 Utilities 18,514 Total other deductions 65,365 65,365 Total deductions 212,958 212,958 Taxable loss 239 In a notice of deficiency mailed to petitioner on August 4, 2005, respondent disallowed all of petitioner’s deductions and costs of goods sold, determining that those items werePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007