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a Trevor, a friend of yours from high school, works as a server at the ST Caf. He asks you to help him prepare his

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a Trevor, a friend of yours from high school, works as a server at the ST Caf. He asks you to help him prepare his Federal income tax return When you inquire about why his bank deposits substantially exceed his tip income, he confides to you that he is a boolde on the side. Trevor the provides you with the following documented Income and expenses for the year: Tip income $16,000 Gambling Income 52.000 Gambling expenses Payouts to winners 29,000 Employee compensation 8,000 Bribe to police officer who is aware of Trevor's bookle activity 7.500 a. Complete the following to determine how the gambling items will affect Trevor's AG (ignore the impact of self-employment taxes), If an amount is zero, enter "0." 52,000 Gross income from gambling Deductible expenses: Salaries Payouts to winners Bribe to police officer 29,000 -8,000 X Subtotal Increase in AGI 15,000 Fendt Check Section 162(a) permits a deduction for all ordinary and necessary expenses paid or incurred in carrying on a trade or business. However, the tax taw provides for the disallowance of certain types of expenses

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