18

ohn and Shirley Duo are married taxpayers who are planning to file MFJ for 2020. They have the following items of income for 2020. Please indicate what amount, if any, should be included in AGI for 2020 for each potential income item:

• Shirley has a home business preparing financial statements for small companies. She earned $68,000 before the following allowable business expenses: insurance $5,000, utilities $10,000, rent $12,000. Shirley earned an additional $10,000 in December 2020 and the client sent her the check on December 20. She received the check on December 27, but did not cash it until January 3, 2021. What amount, if any, should be included in AGI as a result of these transactions?

Group of answer choices

$78,000

$68,000

$51,000

$41,000

$0