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Options available: Please explain the math .................................................................................................................................................................................................................................... Required information [The following information applies to the questions displayed below.) Betty operates a beauty salon as a
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Please explain the math
.................................................................................................................................................................................................................................... Required information [The following information applies to the questions displayed below.) Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,586 in self-employment tax on her salon income, with $1,293 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income Salon sales and revenue Salaries paid to beauticians Beauty salon supplies Alimony paid to her ex-husband, Rocky Rental revenue from apartment building Depreciation on apartment building Real estate taxes paid on apartment building Real estate taxes paid on personal residence Contributions to charity $ 13,735 87,960 46,100 23,560 6,800 34,100 13,700 11,740 6,705 4,765 a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.) Interest income Salon revenue Operating income from salon Apartment building revenue Apartment building income AGI $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add: Alimony Add: Beauty salon supplies Add: Contributions to charity Add: Depreciation on apartment building Add: Real estate taxes paid on apartment building Less: Contributions to charity Less: Depreciation on apartment building Less: Real estate taxes paid on apartment building Less: Real estate taxes paid on personal residence Less: Salaries paid to beauticians Less: Self-employment taxStep by Step Solution
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