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 $2,502 in self-employment tax on her salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income $ 11,255 Salon sales and revenue 86,360 Salaries paid to beauticians 45,250 Beauty salon supplies 23,400 Alimony paid to her ex-husband, Rocky 6,000 Rental revenue from apartment building 31,220 Depreciation on apartment building 12,900 Real estate taxes paid on apartment building 11,100 Real estate taxes paid on personal residence 6,241 Contributions to charity 4,237 a. Determine Betty's AGI, Complete Schedule 1 of Form 1040 for Betty and Complete page 1 (through line 8b) of Form 1040 for Betty
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 $2,502 in self-employment tax on her salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income $ 11,255 Salon sales and revenue 86,360 Salaries paid to beauticians 45,250 Beauty salon supplies 23,400 Alimony paid to her ex-husband, Rocky 6,000 Rental revenue from apartment building 31,220 Depreciation on apartment building 12,900 Real estate taxes paid on apartment building 11,100 Real estate taxes paid on personal residence 6,241 Contributions to charity 4,237 a. Determine Betty's AGI, Complete Schedule 1 of Form 1040 for Betty and Complete page 1 (through line 8b) of Form 1040 for Betty
Chapter3: Income Sources
Section: Chapter Questions
Problem 35P
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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 $2,502 in self-employment tax on her salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
| Interest income | $ | 11,255 |
| Salon sales and revenue | 86,360 | |
| Salaries paid to beauticians | 45,250 | |
| Beauty salon supplies | 23,400 | |
| Alimony paid to her ex-husband, Rocky | 6,000 | |
| Rental revenue from apartment building | 31,220 | |
| Depreciation on apartment building | 12,900 | |
| Real estate taxes paid on apartment building | 11,100 | |
| Real estate taxes paid on personal residence | 6,241 | |
| Contributions to charity | 4,237 | |
a. Determine Betty's AGI, Complete Schedule 1 of Form 1040 for Betty and Complete page 1 (through line 8b) of Form 1040 for Betty.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT