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baherus [9]
3 years ago
12

Michael operates his health food store as a sole proprietorship out of a building he owns. Based on the following information re

garding Year 6, compute his net self-employment income (for SE tax purposes) for Year 6.
Gross receipts $100,000
Cost of Goods Sold 49,000
Utilities 6,000
Real estate taxes 1,000
Gain on sale of business truck 2,000
Depreciation expense 5,000
Section 179 expense 1,000
Mortgage interest on building 7,000
Contributions to Keogh retirement plan 2,000
Net operating loss (NOL) from Year 5 10,000

a. $24,000
b. $16,000
c. $31,000
d. $14,000
Business
1 answer:
Elina [12.6K]3 years ago
5 0

Answer:

c. $31000

Explanation:

Net self-employment income are gross income gotten from a trade or business, less allowable deductions attributable to the trade or business. When calculating self employment income, capital gains and losses, contributions for retirement, net operating losses are not considered.

Given that:

Gross receipts                                           $100,000

Cost of goods sold                                    $49,000

Utilities                                                        $6,000

Real estate taxes                                        $1,000

Depreciation expense                               $5,000

Sec. 179 expense                                       $1,000

Mortgage interest                                       $7,000

Net self-employment income = Gross receipts  - Cost of goods sold  - Utilities - Real estate taxes - Depreciation expense - Sec 179 expense - Mort-age interest

Therefore, Net self-employment income = $100000 - $49000 - $6000 - $1000 - $5000 - $1000 - $7000 = $31000

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3 years ago
On may 20, 2010, tony blackman bought 100 shares of stock from xyz corporation. the quarterly dividend is $1.25 per share and th
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4 0
3 years ago
Kushman Industries has $40,000 of ending finished goods inventory. If beginning finished goods inventory was $20,000 and cost of
Kamila [148]

Answer:

$100,000= cost of goods manufactured

Explanation:

Giving the following information:

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3 years ago
What advanced techniques are used in nail services today?
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Answer:

The use of Paraffin Wax

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Explanation:

<u> Paraffin Wax</u>

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