ACCT $....$

Search results $-006238$

Market Trends $-$ Google...

Electric Guitar Market $20.$

My Home

CengageNOWV

eBook

Revenue

$$20,000$

Depreciation on car

$3,960$

Operating expenses of car

$3,100$

Rent

$6,000$

Wages

$8,200$

Amortization of intangibles

$680$

Jamari estimates that due to a depressed real estate market, the value of land owned by the business declined by $$5,200.$

a$.$ Calculate the effect of Jamari's business on his AGI.

Jamari's business has

$$ of $s$

which is reported

on his tax return.

Feedback

Check My Work

Business or investment expenses are deductible only if the taxpayer can show that the activity was entered into for the purpose of making a profit. However, certain activities may have either profit$-$seeking or personal attributes, depending upon individual circumstances.

b$.$ How would your answer in part $($a$)$ change if the activity was a hobby?

If the activity was a hobby, Jamari will report $ as income. Of his expenses, $ are deductible on his tax return.

Feodback

Check My Work

Incorrect