Anthony, one of your cousins, is operating a very successful luxury nail salon called An-Toe-Nail. Other than that, Anthony also works part-time as a freelance graphic designer. In 2022, Anthony have the income from his designing job of $100k and the revenue from the An-Toe-Nail salon is $800k. During 2022, below are items that Anthony spend money on: Anthony purchased a new car in Jan 2022 which cost $60k. The car is his main vehicle for the year which he will use to drive to and from work. Employee salary: $300k in total, paying for 6 nail technicians, each $50k/year. Utilities cost: $10k Supplies (nail polishes, glitter, chemical, etc.): $10k Nail salon equipment: $50k. Anthony told you that these equipment need to be purchased new every year for some reason. Since the nail salon is a luxury one, he spent twice the money to buy this luxury equipment (the similar but lower quality equipment only cost $25k). Anthony asks for your help in figuring out his taxable income for 2022 before the standard deduction. As a tax expert, you understand that what he means was to help him calculate his AGI. What is Anthony Gross income in 2022? (Show calculation and explanation if needed) What is Anthony Deduction for AGI in 2022? Show calculation and explanation. Answer without explanation will result in no credit Provided that AGI = Total Gross income – Total Deduction for AGI. What is Anthony AGI for 2022?

AGI stands for Adjusted gross income and refers to the gross income gained by an entity after…

Answered: rchased a new car in Jan 2022 which…

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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Anthony, one of your cousins, is operating a very successful luxury nail salon called An-Toe-Nail. Other than that, Anthony also works part-time as a freelance graphic designer.

In 2022, Anthony have the income from his designing job of $100k and the revenue from the An-Toe-Nail salon is $800k. During 2022, below are items that Anthony spend money on:

Anthony purchased a new car in Jan 2022 which cost $60k. The car is his main vehicle for the year which he will use to drive to and from work.
Employee salary: $300k in total, paying for 6 nail technicians, each $50k/year.
Utilities cost: $10k
Supplies (nail polishes, glitter, chemical, etc.): $10k
Nail salon equipment: $50k. Anthony told you that these equipment need to be purchased new every year for some reason. Since the nail salon is a luxury one, he spent twice the money to buy this luxury equipment (the similar but lower quality equipment only cost $25k).

Anthony asks for your help in figuring out his taxable income for 2022 before the standard deduction. As a tax expert, you understand that what he means was to help him calculate his AGI.

What is Anthony Gross income in 2022? (Show calculation and explanation if needed)

What is Anthony Deduction for AGI in 2022? Show calculation and explanation. Answer without explanation will result in no credit

Provided that AGI = Total Gross income – Total Deduction for AGI. What is Anthony AGI for 2022?

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