Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marsha Brady, a lawyer, who is single, operates a small pottery business in her spare time. During 2016, she reported the following income and expenses
Marsha Brady, a lawyer, who is single, operates a small pottery business in her spare time. During 2016, she reported the following income and expenses from this activity which is classified as a trade or business. Revenue from sale of pottery: $9,000; Depreciation on potter's wheel ($3,700); Property taxes on pottery shed($1,500);Supplies used such as clay, etc.($6,300) In addition, she had salary of $40,000 and itemized deductions, not including any listed above, of $5,150.
What is the amount of Marsha's taxable income in 2016?
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