LO 7.1 2. Yolanda is a cash basis taxpayer with the following transactions during the year:

Cash received from sales of products $65,000 Cash paid for expenses (except rent and interest) 40,000 Rent paid on a leased building for 6 months beginning December 1 12,000 Prepaid interest on a bank loan, paid on December 31 for the next 3 months 5,000 Calculate Yolanda’s income from her business for this calendar year.

Sales income $ ____________ Expenses:

Other than rent and interest $ ____________ Rent $ ____________ Interest $ ____________ Net income $ ____________