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[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
[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 $2,562 in self-employment tax on her salon income, with $1,281 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016
Interest income | 12,960 |
Salon sales and revenue | 87,460 |
Salaries paid to beuticians | 45,820 |
Beauty salon supplies | 23,510 |
Alimony paid to her ex-husband, Rocky | 6,550 |
Rental revenue from apartment building | 33,200 |
Depreciation on apartment building | 13,450 |
Real estate taxes paid on apartment building | 11,540 |
Real estate taxes paid on personal residence | 6,560 |
Contributions to charity | 4,600 |
a. Determine Betty's AGI
Interest income | $ | |
Salon Revenue | $ | |
$ | ||
$ | ||
$ | ||
Operating income from salon | $ | |
Apartment building revenue | $ | |
$ | ||
$ | ||
$ | ||
Apartment building income | $ | |
$ | ||
$ | ||
$ | ||
AGI | $ |
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