Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my wc Required information [The following information applies to the questions displayed below) Betty operates a beauty salon as a sole proprietorship. Betty also

image text in transcribed
image text in transcribed
Check my wc Required information [The following information applies to the questions displayed below) Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2020, Betty had the following income and expenses. You may assume that Betty will owe $2,604 in self-employment tax on her salon income, with $1,302 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016 and that Betty itemizes her deductions this year. Interest income Salon sales and revenue Salaries paid to beauticians Beauty salon supplies Alimony paid to her ex-husband, cky Rental revenue from apartment building Depreciation on apartment building Real estate taxes paid on apartment building Real estate taxes paid on personal residence Contributions to charity $ 14,355 88,360 46,330 23,600 7,000 34,820 13,900 11,90 6,821 4,897 a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.) $ 14,355 $ Interest income Salon revenue Less: Salaries paid to beauticians Less: Beauty salon supplies 88,360 18,430 $ 34,820 Operating income from salon Apartment building revenue Less: Depreciation on apartment building Less: Real estate taxes paid on apartment building 9,020 Apartment building income Less: Self-employment tax Less: Alimony

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions