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 $2,620 in self-employment tax on her salon income, with $1,310 representing the employer portion of the self-employment tax. You may also assume that her divorce
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 $2,620 in self-employment tax on her salon income, with $1,310 representing the employer portion of the self-employment tax. You may also assume that her divorce
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Problem 6-30 (LO 6-1) (Algo)
[The following information applies to the questions displayed below.]
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 $2,620 in self-employment tax on her salon.
income, with $1,310 representing the employer portion of the self-employment tax. You may also assume that her divorce
from Rocky was finalized in 2016.
Interest income
Salon sales and revenue
Salaries paid to beauticians
Beauty salon supplies
Alimony paid to her ex-husband, Rocky
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
Interest income
Salon revenue
Operating income from salon
Apartment building revenue
AGI
Problem 6-30 Part-a (Algo)
a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
Apartment building income
$ 14,820
88,660
46,490
23,630
7,150
$
35,360
14,050
12,020
6,908
4,996
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89472806-72bf-4284-995a-7ed59f46cc3b%2Fb08eb2c2-0781-4088-b24c-cde597d11d83%2Fuqfc2gu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 6-30 (LO 6-1) (Algo)
[The following information applies to the questions displayed below.]
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 $2,620 in self-employment tax on her salon.
income, with $1,310 representing the employer portion of the self-employment tax. You may also assume that her divorce
from Rocky was finalized in 2016.
Interest income
Salon sales and revenue
Salaries paid to beauticians
Beauty salon supplies
Alimony paid to her ex-husband, Rocky
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
Interest income
Salon revenue
Operating income from salon
Apartment building revenue
AGI
Problem 6-30 Part-a (Algo)
a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
Apartment building income
$ 14,820
88,660
46,490
23,630
7,150
$
35,360
14,050
12,020
6,908
4,996
0
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