Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Betty operates a beauty salon as a sole proprietorship. Betty also owns ans rents as apartment building. This year Betty had the following income and

Betty operates a beauty salon as a sole proprietorship. Betty also owns ans rents as apartment building. This year Betty had the following income and expenses.. You may assume that Betty will owe $2,572 in self-employment tax on her salon income, with $1,286 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.

interest income $13,270

Salon sales and revenue 87,660

Salaries paid to beauticians 45,930

Beauty salon supplies 23,530

Alimony paid to her ex-husband 6,650

Rental revenue from apartment building 33,560

Depreciation on apartment building 13,550

Real estate taxes paid on apartment building 11,620

Real estate taxes paid on personal residence 6,618

Contributions to charity 4,466

a) Determine Betty's AGI

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

Methodology For Auditing Forest Ecosystem Services In Agroforestry Enterprises Pinar Del Rio Cuba

Authors: Dairon Rojas Hernández

1st Edition

620351974X, 978-6203519747

More Books

Students also viewed these Accounting questions

Question

Identify the characteristics of commu- nity property.

Answered: 1 week ago