Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income: $ Deductible expenses:
Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income: $ Deductible expenses:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 6-45 (LO. 3)
Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and
expenses:
Revenue
$18,000
Property taxes
3,000
Materials and supplies
4,500
Utilities
2,000
Advertising
5,000
Insurance
750
Depreciation
4,000
Without regard to this activity, Alex's AGI is $42,000.
Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his
deductions.
Reportable income:
Deductible expenses: $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b20796c-f8d9-45b4-92bd-57054735dc9f%2F014ccb14-fd5f-42d6-b2f4-368a59f06da1%2Fi59a9ol_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 6-45 (LO. 3)
Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and
expenses:
Revenue
$18,000
Property taxes
3,000
Materials and supplies
4,500
Utilities
2,000
Advertising
5,000
Insurance
750
Depreciation
4,000
Without regard to this activity, Alex's AGI is $42,000.
Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his
deductions.
Reportable income:
Deductible expenses: $
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