Margaret started her own business in the current year and willreport a profit for...

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Accounting

Margaret started her own business in the current year and willreport a profit for her first year. Her results of operations areas follows:
Gross income $45,000
Expenses:
Travel $1,000
Contribution to Presidential Election Campaign $100
Transportation
(5,725 miles evenly throughout the year, using standard mileagemethod) ?
Entertainment in total $4,200
Nine gifts at $50 each $450
Rent and utilities for apartment in total $10,500
(25% is used for a home office)
Complete the table below to determine the net income Margaretshould show on her Schedule C.
If an amount is zero, enter "0". If required, round theamounts to the nearest dollar.
Gross income $
Expenses:
Travel $
Political contribution
Transportation
Entertainment
Gifts
Rent and utilities
Total expenses $
Taxable business income $

Answer & Explanation Solved by verified expert

4.0 Ratings (430 Votes)

ANSWER The taxable business income is arrived as below RemarksExplanation Gross Income 45000 Expenses Travel 1000 Entire amount used for business purposes can be claimed as See Answer

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In: AccountingMargaret started her own business in the current year and willreport a profit for her...Margaret started her own business in the current year and willreport a profit for her first year. Her results of operations areas follows:Gross income$45,000Expenses:Travel$1,000Contribution to Presidential Election Campaign$100Transportation(5,725 miles evenly throughout the year, using standard mileagemethod)?Entertainment in total$4,200Nine gifts at $50 each$450Rent and utilities for apartment in total$10,500(25% is used for a home office)Complete the table below to determine the net income Margaretshould show on her Schedule C.If an amount is zero, enter "0". If required, round theamounts to the nearest dollar.Gross income$Expenses:Travel$Political contribution Transportation Entertainment Gifts Rent and utilities Total expenses$Taxable business income$