Problem 6-2 Accounting Methods (LO 6.2) Yolanda is a cash-basis taxpayer with the following transactions during the year: Cash received from sale of products $70,000 Cash paid for expenses (except rent and interest) 40,000 Rent prepaid on a leased building for 18 months beginning December 1 48,600 Prepaid interest on a bank loan, paid on December 31 for the next 3 months 5,000 Calculate Yolanda's income from her business for this calendar year. If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to the nearest dollar. Sales income Expenses: Other than rent and interest Rent Interest Net income

Problem 6-2 Accounting Methods (LO 6.2) Yolanda is a cash-basis taxpayer with the following transactions during the year: Cash received from sale of products $70,000 Cash paid for expenses (except rent and interest) 40,000 Rent prepaid on a leased building for 18 months beginning December 1 48,600 Prepaid interest on a bank loan, paid on December 31 for the next 3 months 5,000 Calculate Yolanda's income from her business for this calendar year. If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to the nearest dollar. Sales income Expenses: Other than rent and interest Rent Interest Net income

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 59P

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Question

Problem 6-2
Accounting Methods (LO 6.2)
Yolanda is a cash-basis taxpayer with the following transactions during the year:
Cash received from sale of products
$70,000
Cash paid for expenses (except rent and interest)
40,000
Rent prepaid on a leased building for 18 months beginning December 1
48,600
Prepaid interest on a bank loan, paid on December 31 for the next 3 months
5,000
Calculate Yolanda's income from her business for this calendar year.
If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to
the nearest dollar.
Sales income
Expenses:
Other than rent and interest
Rent
Interest
Net income
%24

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Net income of the business is calculated by deducting total expenses from the total revenues.

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