Yolanda is a cash basis taxpayer with the following transactions during the year:Cash received from sale of products$70,000Cash paid for expenses (except rent and interest)40,000Rent prepaid on a leased building for 18 months beginning December 148,600Prepaid interest on a bank loan, paid on December 31 for the next 3 months5,000 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 please answer do not image format

Income from business is one of useful calculation being done in business. This is calculated by…

Answered: Yolanda is a cash basis taxpayer with…

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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Question

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.