Javin is 35 years old, files single, and has the following items in 2020: Business Revenue: ................................................................
Question:
Javin is 35 years old, files single, and has the following items in 2020:
Business Revenue: ................................................................ $120,000
Business Cost of Goods Sold: ................................................ $60.000
Business Rent: ......................................................................... $30,000
Contribution to Roth Ira: ........................................................... $5000
Self-Employed Health Insurance: .......................................... $10,000
Total Self-Employment tax on business income: ................... $5000
Interest Income: ...................................................................... $15,000
Qualified Dividends: .................................................................. $5000
Medical Expenses: ..................................................................... $5000
Property Taxes: ......................................................................... $8000
Charitable Contributions: .......................................................... $500
What is Javin’s 2020 taxable income?
a. $25,100
b. $24,000
c. $22,600
d. $20,100
e. None of these
Expert Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
