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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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M15.

Transcribed Image Text:Interest income
Salon revenue
Operating income from salon
Apartment building revenue
Apartment building income
AGI
![Required information
[The following information applies to the questions displayed below]
Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2022, Rocco
had the following income and expenses. You may assume that Rocco will owe $2,502 in self-employment tax on his salon
income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that his divorce
from Svetlana was finalized in 2016.
Interest income
Salon sales and revenue
Salaries paid to beauticians
Beauty salon supplies
Alimony paid to his ex-wife, Svetlana
Rental revenue from apartment building
Depreciation on apartment building
Real estate taxes paid on apartment building
Real estate taxes paid on personal residence
Contributions to charity
o. Determine Rocco's AGL
Note: Amounts to be deducted should be indicated by a minus sign.
$11,255
86,360
45,250
23,400
6,000
31,220
12,900
11,100
6,241
4,237](https://content.bartleby.com/qna-images/question/ef3e1da9-efa9-41bf-8766-d612578816c8/d6c19b09-08ef-46e3-a68c-d03f59a89d82/eu5nvif_thumbnail.jpeg)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2022, Rocco
had the following income and expenses. You may assume that Rocco will owe $2,502 in self-employment tax on his salon
income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that his divorce
from Svetlana was finalized in 2016.
Interest income
Salon sales and revenue
Salaries paid to beauticians
Beauty salon supplies
Alimony paid to his ex-wife, Svetlana
Rental revenue from apartment building
Depreciation on apartment building
Real estate taxes paid on apartment building
Real estate taxes paid on personal residence
Contributions to charity
o. Determine Rocco's AGL
Note: Amounts to be deducted should be indicated by a minus sign.
$11,255
86,360
45,250
23,400
6,000
31,220
12,900
11,100
6,241
4,237
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