Problem 6-54 (LO 6-6)Rebecca is a doctor with an AGI of $134,000 before consideration of income or loss from her dog breeding business. Her home is on15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show thefollowing related income and expenses for the current year:Income from fees and salesExpenses:Dog foodVeterinary billsSuppliesPublications and dues$ 2,950$4,4503,9501,380440Required:o. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby? (Leave nocells blank. Enter "0" wherever required.)b. How would your answer differ if the operation were held to be a business? (Leave no cells blank. Enter "0" wherever required.Enter all losses with a minus sign.)a Schedule C Business income (oss)Other Income/(loss)Exponses - (Schodule A)b. Schedule C Business income/(loss)Other Income/(loss)Expenses-(Schedule A)

Rebecca is a doctor with an AGI of $134,000 before consideration of income or loss from her dog breeding business. Her home is on 15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the following related income and expenses for the current year: Income from fees and sales Expensest Dog food Veterinary bills Supplies Publications and dues $ 2,950 $4,450 3,950 1,300 440 Required: 6. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby? (Leave no cells blank. Enter "0" wherever required.) b. How would your answer differ if the operation were held to be a business? (Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign.)

Rebecca is a doctor with an AGI of $134,000 before consideration of income or loss from her dog breeding business. Her home is on 15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the following related income and expenses for the current year: Income from fees and sales Expensest Dog food Veterinary bills Supplies Publications and dues $ 2,950 $4,450 3,950 1,300 440 Required: 6. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby? (Leave no cells blank. Enter "0" wherever required.) b. How would your answer differ if the operation were held to be a business? (Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign.)

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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