Question
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
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