1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Sophie works as a superior in the bakery at pick and pay. what level of management is she?
bagirrra123 [75]

Answer:

First-line manager.

Explanation:

Because Sophie is a "superior" instead of being called a "Restaurant Manager" or "Owner" she would be considered front-line.

5 0
2 years ago
Ability to do speedy and accurate arithmetic
GalinKa [24]

Number aptitude is the answer ^ ^

5 0
2 years ago
Alpha Corporation has 1,500 shares of $40 par, 7% cumulative preferred stock, and 2,200 shares of $10 par common stock. Alpha pa
lidiya [134]

Annual preferred dividend = 0.07*40*1500 =$4,200

Since there was a one year dividend arrears to preferred stock holders, the total amount that goes to preferred stockholders = 4,200 + 4,200 (arrears of previous years) = 8,400

So common stockholders received = 10,000-8,400 = $1,600 in dividends

So dividend per share for common shareholders =1600/2200 = $0.727/share

3 0
3 years ago
Some economists say that economic growth involves a​ trade-off between current generations and future generations. If a current
Zielflug [23.3K]

Answer:

Current consumption .

More output & More capital.

Explanation:

Economic growth is the increase in the productive base of a country within a period of time. It can also be seen as the increase in the production of goods and services produced by a country within a period of time, it is simply increase in the gross domestic product (GDP)

Savings is that part of disposable income that is not consumed. That is, that part of income that is not spent on current consumption is what we called savings, the simple equation is:

S = Yd - C

Where: S = Savings, Yd = Disposable income and C = Consumption.  

When the current generation raises its savings rate, it sacrifices current consumption which is alternative forgone or opportunity cost of savings.

The gain for future generation is the accumulation of capital that will be available to them to produce more goods and services.

6 0
3 years ago
In what ways do goals and objectives help managers control the organization?
Elis [28]
Setting goals and objectives provides the guidance and direction, Motivates and inspires the employees, Facilitates planning and also helps organizations evaluate and controls the performance.
6 0
3 years ago
Other questions:
  • anice plans to save $75 a month, starting today, for 20 years. Kate plans to save $80 a month for 20 years, starting one month f
    15·1 answer
  • Radwyn Horticulture Is fixed overhead expenses last month came to $7,699.45. It is known that one salesperson sold 191 saplings,
    14·1 answer
  • In elementary school, your second grade teacher probably led his students from the classroom to the lunch room or the library by
    5·1 answer
  • There are fewer than half as many publishers of college textbooks in the United States now as a generation ago. Three companies
    6·1 answer
  • The following static budget is provided: Units 22,000 Units Sales $ 220,000 Less variable costs: Manufacturing costs $ 77,000 Se
    12·1 answer
  • A small business sold an equipment for $30,000 after depreciating the equipment using the MACRS depreciation method. The applica
    7·1 answer
  • Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
    10·1 answer
  • What is a product mix ?
    8·2 answers
  • What are some things you want money can buy
    13·1 answer
  • In the 2,500-year-old text the art of war, chinese general sun tzu argues that _____________ and ___________ are key components
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!