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Richard operates a roof repair business. This year Richard's business generated cash receipts of $32,000 and Richard made the following expenditures associated with his business
Richard operates a roof repair business. This year Richard's business generated cash receipts of $32,000 and Richard made the following expenditures associated with his business Advertising Car and truck expenses1,360 Depreciation Employee compensation Education $ 500 3,200 5,000 1,000 The education expense was for a two-week, night time course in business management. Richard believes the expenditure should qualify as an ordinary and necessary business expense. What net income should Richard report from his business? Richard is on the cash method and calendar year Numeric Response
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