This Question deals with calculating Taxes

1. Ariel reported the following information for 2023. Ariel is a cash basis, self-employed water skiing instructor and coach.

During 2023, she provided and billed clients for $129,000 in services. At the end of the year, she had collected $109,000 of that amount. Ariel estimates that $2,000 of the remaining $20,000 to be collected will be uncollectible.

Ariel reported the following cash expenditures related to her business:

Liability insurance policy (covering 5/1/23-10/31/24) $21,600

Contract for magazine advertising (covering 2/1/24-5/31/24) $2,280

Ariel is required to obtain 4 hours of safety training every year to maintain her license. This year the 4 hours cost her $650.

During 2023, Ariel used her personal truck for business purposes. She kept track of her fuel costs for business trips which totaled $500. She drove a total of 950 business miles evenly throughout the year.

Ariel was fined $300 for taking clients skiing in a restricted area. It was an area that was newly restricted and Ariel did not realize it was restricted.

Ariel has found the best way to earn new business is to take prospective clients to dinner at the lake so they can watch skiers in action. She spent $1250 on meals at the lake for this purpose.

In 2023, Ariel paid $1,250 for repairs on her boat that were completed during the year. On November 1, 2023, she also paid $1,900 in repairs that she expects to be completed right before her busy season starts again in early April 2024.

Ariel needed extra storage space during the winter so she paid $4,000 ($1,000 per month) on Oct 31, 2023 to rent some space from November 1, 2023 to Feb 28, 2024.

Ariel had fuel costs of $2,000 during the year, all paid during 2023.

A.) Calculate Ariels AGI. Label your final answer and label your numbers to make it easier