dylancasebere
15.04.2020 •
Business
Jordan (single, age 30), a real estate broker (self-employed), had the following income and expenses:
Commission income
180,000
Medical insurance premium paid for his staff
10,000
Office staff salary expense
40,000
Medical insurance premium paid for himself
7,000
Office rental expense
30,000
Unreimbursed medical expenses paid for himself
5,000
Which of the following statement is correct?
A. Jordan will report $93,000 as his business income (from Schedule C) and his AGI is $88,000.
B. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is 93,000.
C. Jordan will report $110,000 as his business income (from Schedule C) and his AGI is $95,870.
D. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $80,935.
E. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $85,935.
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Ответ:
Given:
Commission income = $180,000
Medical insurance = $10,000
Salary expense = $40,000
Medical insurance premium paid for himself = $7,000
Office rental expense = $30,000
Medical expenses paid for himself = 5,000
Computation of business income:
Business income = Total revenue - Total expenses
Business income = $180,000 - ($10,000 - $40,000 - $30,000)
Business income = $180,000 - $80,000
Business income = $100,000
Note: Self-incurred expenses are not included in business expenses.
Computation of AGI:
AGI = Business income - Deduction from schedule c
AGI = $100,000 - Medical insurance premium paid for himself
AGI = $100,000 - $7,000
AGI = $93,000
Therefore, option "B" is the correct answer to the following question.
Ответ: