Margaret started her own business in the current year and will report a profit for her first

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Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: 

Gross income .......................................................................................................................$45,000 

Travel ........................................................................................................................................1,000 

Contribution to Presidential Election Campaign ....................................................................100 

Transportation 5,725 miles, using standard mileage method ..................................................? 

Entertainment in total .............................................................................................................4,200 

Nine gifts at $50 each .................................................................................................................450 

Rent and utilities for apartment in total (25% is used for a home office) .......................10,500

What is the net income Margaret should show on her Schedule C? Show the calculation of her taxable business income.

Gross income Expenses (describe each) Taxable business income


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Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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