Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income $ 14,975 Salon sales and revenue 88,760 Salaries paid to beauticians 46,550 Beauty salon supplies 23,640 Alimony paid to her ex-husband, Rocky 7,200 Rental revenue from apartment building 35,540 Depreciation on apartment building 14,100 Real estate taxes paid on apartment building 12,060 Real estate taxes paid on personal residence 6,937 Contributions to charity 5,029 a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income $ 14,975 Salon sales and revenue 88,760 Salaries paid to beauticians 46,550 Beauty salon supplies 23,640 Alimony paid to her ex-husband, Rocky 7,200 Rental revenue from apartment building 35,540 Depreciation on apartment building 14,100 Real estate taxes paid on apartment building 12,060 Real estate taxes paid on personal residence 6,937 Contributions to charity 5,029 a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
Chapter6: Business Expenses
Section: Chapter Questions
Problem 60P
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Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
| Interest income | $ 14,975 |
|---|---|
| Salon sales and revenue | 88,760 |
| Salaries paid to beauticians | 46,550 |
| Beauty salon supplies | 23,640 |
| Alimony paid to her ex-husband, Rocky | 7,200 |
| Rental revenue from apartment building | 35,540 |
| 14,100 | |
| Real estate taxes paid on apartment building | 12,060 |
| Real estate taxes paid on personal residence | 6,937 |
| Contributions to charity | 5,029 |
a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
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