Question
Mary operates a proprietorship that generated $200,000 in income under GAAP. Included in this amount are: $20,000 of amortization expense; $10,000 for bad debt expense;
Mary operates a proprietorship that generated $200,000 in income under GAAP. Included in this amount are: $20,000 of amortization expense; $10,000 for bad debt expense; $150,000 cost of goods sold; and $16,000 meals and entertainment with clients. Marys maximum CCA has been calculated at $25,000 for the year. How much is Marys business income for tax purposes?
a.203,000
b.220,000
c.228,000
d. 234,000
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A One-Year Accounting Course Part 2
Authors: Trevor Gambling
1st Edition
0080130267, 9780080130262
