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I need to fill in those blanks. If you can explain how you get the numbers, that would be greatly appreciated. Problem 7-43 (LO. 7)
I need to fill in those blanks. If you can explain how you get the numbers, that would be greatly appreciated.
Problem 7-43 (LO. 7) Xinran, who is married and files a joint return, owns a grocery store. In 2022, his gross sales were $276,000 and his operating expenses were $320,000. Other items on his 2022 return were as follows: In 2023, Xinran provides the following information: the 2023 standard deduction (after adjustment for inflation). Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount is zero, enter "0". Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount is zero, enter "0". a. Compute Xinran's taxable income (or loss) for 2022 ? Feedback Theck My Work The NOL provision is intended as a form of relief for business income and losses. Thus, only losses from the operation of a trade or business (or profession), casualty and theft losses, or losses from the confiscation of a business by a foreign government can create an N. b. Compute Xinran's NOL for 2022 . c. Determine Xinran's taxable income for 2023. 2023 (1) Determine taxable income before application of the NOL: Net business income Salary Interest income Adjusted gross income Less: Itemized deductions: Less: Deduction for qualified business income: Grocery store Taxable income (2) Determine the NOL deduction: 1. The NOL carryforward $, or 2. 80% of taxable income computed in step 1:$ (3) Determine final taxable income: Net business income Salary Interest income NOL deduction Adjusted gross income Less: Itemized deductions Charitable contributions Medical expenses Less: Deduction for qualified business income: Grocery store Taxable income Problem 7-43 (LO. 7) Xinran, who is married and files a joint return, owns a grocery store. In 2022, his gross sales were $276,000 and his operating expenses were $320,000. Other items on his 2022 return were as follows: In 2023, Xinran provides the following information: the 2023 standard deduction (after adjustment for inflation). Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount is zero, enter "0". Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount is zero, enter "0". a. Compute Xinran's taxable income (or loss) for 2022 ? Feedback Theck My Work The NOL provision is intended as a form of relief for business income and losses. Thus, only losses from the operation of a trade or business (or profession), casualty and theft losses, or losses from the confiscation of a business by a foreign government can create an N. b. Compute Xinran's NOL for 2022 . c. Determine Xinran's taxable income for 2023. 2023 (1) Determine taxable income before application of the NOL: Net business income Salary Interest income Adjusted gross income Less: Itemized deductions: Less: Deduction for qualified business income: Grocery store Taxable income (2) Determine the NOL deduction: 1. The NOL carryforward $, or 2. 80% of taxable income computed in step 1:$ (3) Determine final taxable income: Net business income Salary Interest income NOL deduction Adjusted gross income Less: Itemized deductions Charitable contributions Medical expenses Less: Deduction for qualified business income: Grocery store Taxable income
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