Jackson owns 40% interest in Beyond Belief Dance Company, un S-corporation with ordinary operating income of...

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Jackson owns 40% interest in Beyond Belief Dance Company, un S-corporation with ordinary operating income of $91,000 in the current year. On weekends, Jackson sometimes performs as a drag queen, selling merchandise for cash at venues and often collects stacks of tips, mostly dollar bills. In January of the current year, Jackson entered his first drag competition at a local bar and ended up winning first prize, $2,400, and a collection of wigs worth $1,400. That night Jackson also sold merchandise for $589 that had cost him $180, and collected tips totaling $183, mostly in the form of bunched-up dollar bills. What amount of income must Jackson recognize due to these items in the current year? Jackson owns 40% interest in Beyond Belief Dance Company, un S-corporation with ordinary operating income of $91,000 in the current year. On weekends, Jackson sometimes performs as a drag queen, selling merchandise for cash at venues and often collects stacks of tips, mostly dollar bills. In January of the current year, Jackson entered his first drag competition at a local bar and ended up winning first prize, $2,400, and a collection of wigs worth $1,400. That night Jackson also sold merchandise for $589 that had cost him $180, and collected tips totaling $183, mostly in the form of bunched-up dollar bills. What amount of income must Jackson recognize due to these items in the current year?

Answer rating: 100% (QA)

Given Share in dance companys income 91000 x 40 36400 Prize money ... View the full answer