Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. Determine Betty's AGI and complete page 1 of Form 1040 for Betty. You may assume that Betty will owe $2,502 in self-employment tax on her salon income.
Interest income .......................................................... $11,255
Salon sales and revenue ................................................ 86,360
Salaries paid to beauticians ............................................. 45,250
Beauty salon supplies ...................................................... 23,400
Alimony paid to her ex-husband, Rocky .............................. 6,000
Rental revenue from apartment building .............................. 31,220
Depreciation on apartment building ..................................... 12,900
Real estate taxes paid on apartment building ........................ 11,100
Real estate taxes paid on personal residence ......................... 6,241
Contributions to charity ........................................................ 4,237