Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Adrian Johnson owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 2 Pine Ave, Long Beach, CA
Adrian Johnson owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 2 Pine Ave, Long Beach, CA 90802. Its income and associated expenses for the year ending December 31, 2019, are the following: Gross Income $ 405,000 Less: Cost of Goods Sold (212,000 Gross Profit 193,000 Automobile Expense (4,100) Depreciation Expense ? Office Expense (50,000) Supplies Expense (3,600) Meals Expense (3,000) Entertainment Expense (2,000) Utilities Expense (3,900) Salaries and Wages Expense (90,000) FICA tax Expense (6,000) Total Expense Net Income/(Loss) $ ? (?) On January 1, 2019, Story Books purchased a new delivery van for $60,000. The van's weight does not exceed 6,000 pounds. Furthermore, it purchased bookcases (7-year property) for $18,000, and sofas (5-year property) for $8,000 on March 1, 2019. It elected to use MACRS (half-year convention)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started