Cole England operates The Herbal Center, a marijuana dispensary, in Sacramento, California, as a sole proprietorship. The distribution of marijuana for medical purposes as well as nonmedical use by adults is legal under California state law. The following information relates to The Herbal Center's first year of business operations: Revenues $200,000 Less: Cost of goods sold 120,000       Other business expenses 50,000 Net profit $30,000   By how much will The Herbal Center’s operations increase Cole's adjusted gross income?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cole England operates The Herbal Center, a marijuana dispensary, in Sacramento, California, as a sole proprietorship. The distribution of marijuana for medical purposes as well as nonmedical use by adults is legal under California state law.

The following information relates to The Herbal Center's first year of business operations:

Revenues $200,000
Less: Cost of goods sold 120,000
      Other business expenses 50,000
Net profit $30,000

 

By how much will The Herbal Center’s operations increase Cole's adjusted gross income?

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