Gary Amin carries on a successful collectibles business as a sole proprietor. His business income statement for the year is as follows: $150,000 Revenue Expenses: Lease payments on store displays $3,000 Insurance premiums (this year and next) $4,000 $15,000 $3,000 $2,000 $1,000 $40,000 $20,000 Photocopier/printer Amortization (straight line 5 yrs) Hurricanes tickets to take out clients Life Insurance for business loan Salary expense Income tax estimate Total expenses $ 88,000 Net Income $ 62,000 Note 1 - Photocopier/printer purchased in current year, Class 8 (20%) Note 2 - $35,000 of the salary expense was for Gary (the owner) Note 3 -Inventory sold for $12,000 that cost $8,000. Only 25% of the money has been collected in the current year Required: Calculate Business Net Income for Tax purposes

Gary Amin carries on a successful collectibles business as a sole proprietor. His business income statement for the year is as follows: $150,000 Revenue Expenses: Lease payments on store displays $3,000 Insurance premiums (this year and next) $4,000 $15,000 $3,000 $2,000 $1,000 $40,000 $20,000 Photocopier/printer Amortization (straight line 5 yrs) Hurricanes tickets to take out clients Life Insurance for business loan Salary expense Income tax estimate Total expenses $ 88,000 Net Income $ 62,000 Note 1 - Photocopier/printer purchased in current year, Class 8 (20%) Note 2 - $35,000 of the salary expense was for Gary (the owner) Note 3 -Inventory sold for $12,000 that cost $8,000. Only 25% of the money has been collected in the current year Required: Calculate Business Net Income for Tax purposes

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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