Question
Julia is single. Julia operates a lawn care business as a sole proprietorship. In 2019, Julia had her best year ever. Because she did so
Julia is single. Julia operates a lawn care business as a sole proprietorship. In 2019, Julia had her best year ever. Because she did so well, Julia had custom hats and shirts made with her business logo on them. She upgraded the shirts and hats to the top-of-the-line products instead of getting the cheap ones. She gave the hats and shirts to family and friends to wear around as advertising. Julia is also a huge baseball fan. She attends many of the games for her local team. On occasion, Julia gets autographs from players and sells the signed memorabilia on eBay. On one particular occasion, Julia knew Mike Trouts team was playing against her team. Julia bought a ticket to the game so she could try to get his autograph. The ticket cost $100. Julia got Mr. Trouts autograph and was going to give the ball to her nephew. However, another fan offered her $50 for the ball and Julia sold it to the fan. 2019 income and expenses: Income: $85,000 gross income from lawn care $50 from sale of signed baseball $5,000 gain on the sale of a Company Y stock held for five months Expenses: $20,000 of operating expenses (fuel, repairs on equipment, wages to employees) $4,000 for the hats and shirts $100 for ticket to game $10,000 loss on the sale of Company X stock held for six months. Please calculate Julias adjusted gross income for 2019
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started