Question: Addison Brown, single and age 3 2 . She is employed as regional sales manager by PILLS Corporation, a manufacturer and distributor of vitamins and

Addison Brown, single and age 32. She is employed as regional sales manager by PILLS Corporation, a manufacturer and distributor of vitamins and food supplements. Addison is paid an annual salary of $50,000. $9,600 of Federal Income Tax was withheld.
Addison also has a bookkeeping and tax business that she runs out of her home. Her fees income collected for the year was $25,000. Out of 1,500 square feet of living space in her apartment, Addison has set aside 300 square feet as an office. Expenses for 2023 relating to the office are listed below.
Rent $18,000
Utilities $4,000
Insurance $1,600
Carpet $1,200(office area only)
Her self-employment-related expenses for 2023 are summarized below.
Airfare $4,100
Lodging $3,200
Business meals $2,800
Taxi, Uber, etc. $300
Business Gifts $540
Continuing Education $400
Professional journals $140
The business gifts were boxes of candy costing $30 sent to 18 clients at Christmas. The continuing education was a noncredit course dealing with improving people management skills that Addison took online.
She uses her automobile 10% for business and 90% for personal. During 2023, Addison drove a total of 15,000 miles - use standard mileage rate.
Besides the items already mentioned, Addison had the following revenue in 2023: Bank of America interest income of $250 and City of Dallas bond interest of $1,000.
Addison's expenditures for 2023(not previously noted) are summarized below.
Medical7,000
State and local tax4,000
Property Taxes7,000
Church pledge Paid6,000
Credit card interest2,000
Tax return preparation fee500
Compute tax liability

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