Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 3, Problem 2P
To determine
Introduction: A sole proprietor uses schedule C to report profit or loss of his business. It requires disclosure of basic information such as name and location of the business, accounting method, material participation in the business, and starting date or acquisition date of business.
The net income and taxable business income M should show in Schedule C.
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Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows:
Gross income
Travel
Contribution to Presidential Election Campaign
Transportation
5,300 miles equally across the year, using standard
mileage method
Entertainment in total
Nine gifts at $50 each
Rent and utilities for apartment in total
(25 percent is used for a home office)
Gross income
Expenses:
Travel
Political contribution
Transportation
Entertainment
Complete the table below to determine the net income Margaret should show on her Schedule C.
If an amount is zero, enter "0". If required, round the amounts to the nearest dollar.
Gifts
Rent and utilities
Total expenses
Taxable business income
45,000
1,000
0
0
225
$45,000
1,000
100
2,625
X
X
?
X
4,200
450
10,500
Joye started her home business in 2020 and the results of her operations are given below.
Gross Income: $65,000
Domestic business travel details:
Airfare $600
Meals 350
Entertainment 100
Car rental 250
Personal Site seeing costs 300
Total travel costs 1,600
Contribution to political campaigns 300
Total entertainment 3,500
Business gifts, 10 distributed at $45 each 450
Rent and utilities on her apartment, 30% attributable to home office…
What is her return on investment for this General Accounting Question?
Chapter 3 Solutions
Income Tax Fundamentals 2020
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Which of the following formulas represents the...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Heather drives her minivan 953 miles for business...Ch. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Under the high-low method, the federal per diem...
Ch. 3 - Prob. 11MCQCh. 3 - Prob. 12MCQCh. 3 - Prob. 13MCQCh. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - Prob. 17MCQCh. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - Prob. 20MCQCh. 3 - Prob. 21MCQCh. 3 - Prob. 22MCQCh. 3 - Prob. 23MCQCh. 3 - Stewie, a single taxpayer, operates an activity as...Ch. 3 - Prob. 2PCh. 3 - Lawrence owns a small candy store that sells one...Ch. 3 - Business with gross receipts of $25 million or...Ch. 3 - Teresa is a civil engineer who uses her automobile...Ch. 3 - Prob. 7PCh. 3 - Martha is a self-employed tax accountant who...Ch. 3 - Prob. 9PCh. 3 - Go to the U.S. General Services Administration...Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Marty is a sales consultant. Marty incurs the...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Cooper and Brandy are married and file a joint...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Cindy operates a computerized engineering drawing...Ch. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Lew is a practicing CPA who decides to raise...
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