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Richard operates an oriental rug store out of his home. 400 of the 1600 square feet of floor space are allocated to the rug display
Richard operates an oriental rug store out of his home. 400 of the 1600 square feet of floor space are allocated to the rug display and sales area. Other information is as follows: Gross income from the rug store $ 25,000; purchase price of the carpets sold 15,000; supplies for the store 2,000; depreciation on total residence 12,000; utilities on total residence 6,000. What amount of income or loss from the rug business should Richard show on his return? Question options: 1) 2000 loss 2) 3500 income 3) 10,000 loss 4) 16250 5) 0
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