Kahleeah maintains an office in her home where she conducts a dressmaking business. During the year she collects $4,000 from sales, pays $1,300 for various materials and supplies, and properly allocates $2,500 of rent expense and $500 of her utilities expense to the use of her home office. What amount of the rent and utilities expense may Kahleeah deduct in the current year in computing her net income or loss from the dressmaking business?
Kahleeah maintains an office in her home where she conducts a dressmaking business. During the year she collects $4,000 from sales, pays $1,300 for various materials and supplies, and properly allocates $2,500 of rent expense and $500 of her utilities expense to the use of her home office. What amount of the rent and utilities expense may Kahleeah deduct in the current year in computing her net income or loss from the dressmaking business?
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 22MCQ
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Transcribed Image Text:Kahleeah maintains an office in her home where she conducts a dressmaking business. During the year she
collects $4,000 from sales, pays $1,300 for various materials and supplies, and properly allocates $2,500 of rent
expense and $500 of her utilities expense to the use of her home office. What amount of the rent and utilities
expense may Kahleeah deduct in the current year in computing her net income or loss from the dressmaking
business?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT