Marta is an employee and her salary for taxable year 20X1 was $35,000. In that same year, Marta operated a business on her own which generated $100,000 in gross income and $75,000 in ordinary and necessary expenses.

What forms and what amounts will Marta use to report the activities previously presented to the Department of the Treasury for purposes of determining her income tax?

Select one:

a. Marta will file an individual income tax return to report her salary income of $35,000 and she will file a second business return to report only the gross income of $100,000 from her self-employment business.

b. Marta will file an individual income tax return to report her salary income of $35,000 and will file a second business return to report the gross income of $100,000, the ordinary and necessary expenses of $75,000 and the net income of $25,000 from her business per own account.

c. Marta will file an individual income tax return to report the salary income of $35,000 and only the gross income of $100,000 from her own business.

d. Marta will file an individual income tax return to report her salary income of $35,000 and gross income of $100,000, ordinary and necessary expenses of $75,000, and net income of $25,000 from her self-employment business.