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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Roger, an individual, owns a proprietorship called Green Thing. In the current year, Roger has the following items: Business income $200,000 Business expense $150,000 Loss on a completely destroyed business machine. The machine had an adjusted basis of $25,000 and a fair market value of $20,000 before destroyed. The machine was not insured. Loss on a business truck. The truck had an adjusted basis of $8,000. The repairs to fix the truck cost $10,000. He did not claim the loss from insurance company. Determine Roger's net business income. O A. $47,000 O B. $30,000 O C. $22,000 O D. $17,000 O E. $15,000
Transcribed Image Text:Roger, an individual, owns a proprietorship called Green Thing. In the current year, Roger has the following items: Business income $200,000 Business expense $150,000 Loss on a completely destroyed business machine. The machine had an adjusted basis of $25,000 and a fair market value of $20,000 before destroyed. The machine was not insured. Loss on a business truck. The truck had an adjusted basis of $8,000. The repairs to fix the truck cost $10,000. He did not claim the loss from insurance company. Determine Roger's net business income. O A. $47,000 O B. $30,000 O C. $22,000 O D. $17,000 O E. $15,000
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