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c. Given the original facts, what is Rita's AGI for the year? 6.500

c. Given the original facts, what is Rita's AGI for the year? 6.500

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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S ! Required information [The following information applies to the questions displayed below.] Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,960. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. AGI Real property taxes Interest on home mortgage Operating expenses of home Depreciation Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,600. Rita Itemizes deductions, and her itemized deduction for non- home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $15,900 In gross income. Note: Leave no answer blank. Enter zero if applicable. c. Given the original facts, what is Rita's AGI for the year? $ $ 1,780 5,370 890 1,708 79,500
Transcribed Image Text:S ! Required information [The following information applies to the questions displayed below.] Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,960. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. AGI Real property taxes Interest on home mortgage Operating expenses of home Depreciation Also, assume that, not counting the sole proprietorship, Rita's AGI is $63,600. Rita Itemizes deductions, and her itemized deduction for non- home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $15,900 In gross income. Note: Leave no answer blank. Enter zero if applicable. c. Given the original facts, what is Rita's AGI for the year? $ $ 1,780 5,370 890 1,708 79,500
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