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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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