Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an...
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Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2023, Rocco had the following income and expenses. You may assume that Rocco will owe $2,590 in self-employment tax on his salon income, with $1,295 representing the employer portion of the self-employment tax. You may also assume that his divorce from Svetlana was finalized in 2016.
| Interest income | $ 13,890 |
|---|---|
| Salon sales and revenue | 88,060 |
| Salaries paid to beauticians | 46,160 |
| Beauty salon supplies | 23,570 |
| Alimony paid to his ex-wife, Svetlana | 6,850 |
| Rental revenue from apartment building | 34,280 |
| Depreciation on apartment building | 13,750 |
| Real estate taxes paid on apartment building | 11,780 |
| Real estate taxes paid on personal residence | 6,734 |
| Contributions to charity | 4,798 |
a. Determine Rocco's AGI.
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