1. Cindy, a real estate broker, had the following income and expenses in her business:

Commissions income $180,000

And she also incurred the following expenses during the tax year:

Referral fees paid to non-brokers for referrals (illegal under state law and subject to criminal penalties)	40,000
Property tax on the office	5,500
Office supplies	3,000
Alimony paid to her ex-husband	7,200
Mortgage interest paid on her residence	6,500
Office rental expenses	20,000
Office staff salaries	40,000
Medical insurance premium paid for herself and her dependents	5,000
Fees paid to Broker Association	7,000
Political contribution to support her party	3,000
Parking tickets	500
Medical expenses	2,000

How much net income will be reported from this business (on Schedule C)?

What is her AGI?

How much is the total itemized deduction reported on her Sch. A?

2. Jordan has some damages on his business property when tornado hit his area. Her truck was used 100 percent for business use in her sole proprietorship. The truck had originally cost $35,000 and she had taken $5,000 depreciation. At the time of the disaster, it was worth $25,000. After the accident, it was $0. She received insurance companys payment of $20,000. How much is her deducible casualty loss?

What is her deductible casualty loss if the trucks residual value was $5,000?