Answer:
Jill's maximum possible PPP loan amount is $2,500
Step-by-step explanation:
The given parameters of the PPP loan application applied to by Jill is as follows;
Jill submits her 2019 IRS Form Schedule C with Gross Sales = $36,000
The net profit loss = $12,000
Therefore, Jill's monthly average net profit = $12,000 ÷ 12 = $1,000
Jill's PPP loan amount = 2.5 × Her monthly net profit
∴ Jill's maximum possible PPP loan amount = 2.5 × $1,000 = $2,500
Jill's maximum possible PPP loan amount = $2,500
