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Lew started a business writing a popular syndicated Japanese gardening column in the current year and will report a profit for his first year. His results of operations are as follows: Gross income $38,000 Travel expense 4,000 Transportation, 831 miles (at 58 cents per mile) 482 Entertainment 800 Subscription to bonsai and Japanese gardening magazines 500 Gifts: 8 at $100 each; 2 at $20 each 840 10,000 Rent and utilities for apartment, in total (15 percent is used for a home office) What is the net income Lew should show on his Schedule C? Show the calculation of his taxable income.

Lew started a business writing a popular syndicated Japanese gardening column in the current year and will report a profit for his first year. His results of operations are as follows: Gross income $38,000 Travel expense 4,000 Transportation, 831 miles (at 58 cents per mile) 482 Entertainment 800 Subscription to bonsai and Japanese gardening magazines 500 Gifts: 8 at $100 each; 2 at $20 each 840 10,000 Rent and utilities for apartment, in total (15 percent is used for a home office) What is the net income Lew should show on his Schedule C? Show the calculation of his taxable income.

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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Lew started a business writing a popular syndicated Japanese gardening column in the current year and will report a profit for his first year. His results of operations are as follows: - **Gross income:** $38,000 - **Travel expense:** $4,000 - **Transportation, 831 miles (at 58 cents per mile):** $482 - **Entertainment:** $800 - **Subscription to bonsai and Japanese gardening magazines:** $500 - **Gifts: 8 at $100 each; 2 at $20 each:** $840 - **Rent and utilities for apartment, in total: $10,000** - (15 percent is used for a home office) **Question:** What is the net income Lew should show on his Schedule C? Show the calculation of his taxable income. **Calculation Structure:** - **Gross income:** $__________ - **Expenses:** - Travel: $__________ - Transportation-mileage: $__________ - Entertainment: $__________ - Subscriptions: $__________ - Gifts: $__________ - Home office (rent & utilities): $__________ - **Total Expenses:** $__________ - **Taxable income:** $__________
Transcribed Image Text:Lew started a business writing a popular syndicated Japanese gardening column in the current year and will report a profit for his first year. His results of operations are as follows: - **Gross income:** $38,000 - **Travel expense:** $4,000 - **Transportation, 831 miles (at 58 cents per mile):** $482 - **Entertainment:** $800 - **Subscription to bonsai and Japanese gardening magazines:** $500 - **Gifts: 8 at $100 each; 2 at $20 each:** $840 - **Rent and utilities for apartment, in total: $10,000** - (15 percent is used for a home office) **Question:** What is the net income Lew should show on his Schedule C? Show the calculation of his taxable income. **Calculation Structure:** - **Gross income:** $__________ - **Expenses:** - Travel: $__________ - Transportation-mileage: $__________ - Entertainment: $__________ - Subscriptions: $__________ - Gifts: $__________ - Home office (rent & utilities): $__________ - **Total Expenses:** $__________ - **Taxable income:** $__________
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