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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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Answer:

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Explanation:

The computation of the dollar return is shown below:

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Which of the following would make the best thesis statement for a debate? a. Art and music classes are great. b. Schools should
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3 0
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klasskru [66]

Answer: d. the production function is unrelated to the marginal product.

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production function helps show the relationship between the quantity of inputs used in producing a goods or service and the quantity of output it produces. Example; a bag of seeds produces 5 bushels of seeds.

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Answer:

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Data provided in the question

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If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acqu
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Answer:

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The monetary multiplier shows the money creating effect of the fractional banking system. E.g. you deposit $1,000 at bank A. Bank A will lend $750 to Bill. Bill then purchases a bike from Tom and Tom deposits the $750 in bank B. Bank B will then lend $562.50 to Sarah. Sarah purchases a TV from Alex, and Alex deposits the money in bank C. Then bank C will lend $421 to Frank, and the cycle goes on.

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