Mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. In addit

Question

2 years ago

7

Mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. In addit

ion, he incurs a loss of $50,000 from an investment in a passive activity acquired three years ago. After considering the passive investment, Mike's net income for the current year is $ ?

Business

1 answer:

quester [9] · Answer 1 · 2022-08-24T11:39:26+03:00

quester [9]2 years ago

4 0

Answer:

Mike's net income for the current year is $245,000.

Explanation:

Net income for current year

= Professional income + Dividend and Interest Income

= $200,000 - $45,000

= $245,000

Therefore, Mike's net income for the current year is $245,000.