Question: Based upon the following facts, determine a person's preliminary understatement of income: Schedule C receipts: $280,000 Schedule C expenses: $135,000 Personal living expenses: $65,000

Based upon the following facts, determine a person's preliminary understatement of income:

Schedule C receipts: $280,000

Schedule C expenses: $135,000

Personal living expenses: $65,000

\\

a. an overstatement

b. $80,000

c. $135,000

d. $280,000

e. None of the above

Give proper explanation with complete answer and do not copy from chegg.

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