Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) (10 points) Hopper works as an independent contractor (self-employed sole proprietor) for local businesses on weekends, and he often provides services in exchange for

image text in transcribed
2) (10 points) Hopper works as an independent contractor (self-employed sole proprietor) for local businesses on weekends, and he often provides services in exchange for property. All of the following happened during 2020: Hopper provided security services in exchange for $1,400 of car repair services, $2,000 of groceries, and cash of $6,250. The cash was mailed to Hopper in the form of a check on December 15, 2020. Hopper, however, was out of town for the entire month of December. When he checked his mail on January 1, 2021, the check was there. Hopper also received a gift card in exchange for services he provided that could only be used for $500 worth of clothing at a local mall shop. During 2020, Hopper only redeemed $200 worth of merchandise on the gift card. I Hopper had a total of $4,200 worth of legitimate business expenses during 2020, none of which were considered Cost of Goods Sold. Determine Hopper's gross income for 2020 assuming that he uses the cash basis of accounting

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-26

Authors: Jeffrey Slater

8th Edition

0130911429, 978-0130911421

More Books

Students also viewed these Accounting questions

Question

What is the purpose of a customized benefits plan?

Answered: 1 week ago

Question

What are topics included within employee services?

Answered: 1 week ago