Question
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,596 in self-employment tax on her salon income, with $1,298 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
Interest income $ 14,045
Salon sales and revenue 88,160
Salaries paid to beauticians 46,210
Beauty salon supplies 23,580
Alimony paid to her ex-husband, Rocky 6,900
Rental revenue from apartment building 34,460
Depreciation on apartment building 13,800
Real estate taxes paid on apartment building 11,820
Real estate taxes paid on personal residence 6,763
Contributions to charity 4,831
Determine Betty's AGI
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