Question
Mary operates a proprietorship that generated $100,000 in income under GAAP. Included in this amount are: $7,000 of amortization expense; $4,000 for bad debt expense;
Mary operates a proprietorship that generated $100,000 in income under GAAP. Included in this amount are: $7,000 of amortization expense; $4,000 for bad debt expense; $112,000 cost of goods sold; and $12,000 meals and entertainment with clients. Mary's maximum CCA has been calculated at $10,000 for the year. How much is Mary's business income for tax purposes?
a- $113,000
b- $109,000
c- $107,000
d- $103,000
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Financial And Managerial Accounting
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
4th Edition
1119752620, 978-1119752622
