Kana is a CPA who loves chinchillas. She breeds chinchillas as pets (she currently owns 13 of them) and every so often sells a baby chinchilla to a suitable family to keep as a pet. In the current year, she sells $250 worth of chinchillas and incurs the following expenses: Chinchilla cages Advertising for chinchilla sales $300 $2,500 This activity is considered a hobby. Kana has adjusted gross income of $72,000. What is the amount of income and expense Kana recognizes (assume she itemizes deductions) associated with her chinchilla hobby? If an amount is zero, enter "0". Income Deduction 0X 2,800 X
Kana is a CPA who loves chinchillas. She breeds chinchillas as pets (she currently owns 13 of them) and every so often sells a baby chinchilla to a suitable family to keep as a pet. In the current year, she sells $250 worth of chinchillas and incurs the following expenses: Chinchilla cages Advertising for chinchilla sales $300 $2,500 This activity is considered a hobby. Kana has adjusted gross income of $72,000. What is the amount of income and expense Kana recognizes (assume she itemizes deductions) associated with her chinchilla hobby? If an amount is zero, enter "0". Income Deduction 0X 2,800 X
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 34P
Related questions
Question
Kana is a CPA who loves chinchillas. She breeds chinchillas as pets (she currently owns 13 of them) and every so often sells a baby chinchilla to a suitable family to keep as a pet. In the current year, she sells $250 worth of chinchillas and incurs the following expenses:
Line Item Description Amount
Chinchilla cages $300
Advertising for chinchilla sales $2,500
This activity is considered a hobby. Kana has adjusted gross income of $72,000. What is the amount of income and expense Kana recognizes (assume she itemizes deductions) associated with her chinchilla hobby? If an amount is zero, enter "0".
Line Item Description Amount
Income $fill in the blank 1
0
Deduction
Transcribed Image Text:Kana is a CPA who loves chinchillas. She breeds chinchillas as pets (she currently owns 13 of them) and every so often sells a baby chinchilla to
a suitable family to keep as a pet. In the current year, she sells $250 worth of chinchillas and incurs the following expenses:
Chinchilla cages
Advertising for chinchilla sales
$300
$2,500
This activity is considered a hobby. Kana has adjusted gross income of $72,000. What is the amount of income and expense Kana recognizes
(assume she itemizes deductions) associated with her chinchilla hobby? If an amount is zero, enter "0".
Income
Deduction
0X
2,800 X
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