Richard operates a hair styling boutique out of his home. The boutique occupies 420 of the home's 1,200 square feet of floor space. Other information is as follows:

Choose the correct answer. a.Education expenses are deductible on Schedule C even if the education qualifies the taxpayer for a new trade or business. b.Expenses for travel as a form of education are not deductible. c.Expenses required for education to maintain skills for the taxpayer's current business are not deductible. d.The cost of a CPA review course is deductible by a bookkeeper on his Schedule C.

What amount of income or loss from the boutique should Richard show on his return?

a.$1,300 income

b.$0 income or loss

c.$10,400 loss

d.$3,500 income

e.None of these choices are correct.

What is the amount of Acacia's cost of goods sold for 20X1?

a.$1,600,000

b.$1,800,000

c.$1,700,000

d.$2,000,000

e.None of these choices are correct.

c.$30,000

d.$280,000

c.$795

d.$801

e.None of these choices are correct.