Question: Why do sole proprietors not include all the items of income and deductions related to their business in the calculation of the businesss operating income?

Why do sole proprietors not include all the items of income and deductions related to their business in the calculation of the business’s operating income?

Step by Step Solution

★★★★★

3.56 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A sole proprietorship is not an entity separate from its owner Because the results of the sole propr... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

242-L-B-L-I-T-E (77).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Items of income and expenses may be included in the income statement only if they can be measured with certainty. Discuss.

The business entity principle O requires that partriership income be taxed at the partnership level O requires that sole proprietors have unlimited liability means that business records should be...

Sole proprietorships account for 76 percent of all U.S. businesses and generate 6 percent of all business revenue. Only 18 percent of all sole proprietorships are incorporated, but they generate 90...

LO1 Why do sole proprietors not include all the items of income and deductions related to their business in the calculation of the businesss operating income?

MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are: a. Deductions from AGI (Adjusted Gross Income) b. Made up of basic and additional deductions...

CASE STUDY You are a Certified Public Accountant and have been asked to provide your client with Tax Planning Advice.Given their current corporate form, your client has requested an analysis of their...

POINTS) MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 1. Standard deduction for tax purposes are a. b. c. Deductions from AGI (Adjusted Gross Income Made up of basic and additional deductions...

Please solve this assignment for me see atached doc You, CPA, are the tax partner in your own small accounting firm, You CPA LLP. You have just finished a meeting with two potential...

Essentials of Federal Income Taxation 23. Form 1120-S. (Obj. 5) Prince Corporation (EIN 70-2152973), an Scorporation, operates as a small variety store on the accrual basis. It is located at 1701...

A portable radio requires an emf of 4.5 V. Olivia has only two non rechargeable 1.5-V batteries, but she finds a larger 6.0-V battery. (a) How can she arrange the batteries to produce an emf of 4.5...

A TNS poll of 1000 randomly selected adults showed that 460 of them say that public speaking is an activity that they dread most. Shown next is the StatCrunch display resulting from a test of the...

ster page My X A Conter CENGAGE MINDTAP Chapter 09 Homework Forecasting and Demand Planning Search this cours canton Supplies Inc is a service firm that employs approximately 100 people Because of...

Under the Commercial Paper Article of the UCC, in a nonconsumer transaction, which of the following are real defenses available against a holder in due course? Material alteration Discharge of...

Odiferous Chemical Company (OCC) manufactured pesticides that were toxic. Over the course of several years, the toxic waste contaminated the air and water around the companys plant. Several employees...

The Reverend Shaman Oracle is an ordained minister in the Church of Prophetic Prophecy in Palm Desert, California. In the current year, Shaman receives payments of $ 150,000 from the church for his...

When an Internal Revenue Code section and a tax treaty provision appear to conflict, which usually prevails?

Could you please help me answer these questions? Thank you! Show your work and use the table (on slide 20) as needed to say whether the hypothesis was supported or rejected and why. Problem 1: We...

The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a...

An office in Albuquerque has 24 workers including management. Eight of the workers commute to work from the west side of the Rio Grande River. Suppose six of the office workers are randomly selected....