Betty operates a beauty salon as a sole proprietorship. Betty also owns and rent

Question

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. Interest income $ 11,255 Salon sales and revenue 86,360 Salaries paid to beauticians 45,250 Beauty salon supplies 23,400 Alimony paid to her ex-husband, Rocky 6,000 Rental revenue from apartment building 31,220 Depreciation on apartment building 12,900 Real estate taxes paid on apartment building 11,100 Real estate taxes paid on personal residence 6,241 Contributions to charity 4,237 Self-employment tax (employer portion $1,251; employee portion $924) 2,175

Explanation / Answer

Interest income.......11255

salon revenue.........86360

Less: salaries.......-45250

supplies..............23400

operating income......17710

apartment building revenue...31220

Less:depriciation......-12900

Taxes on bulding.........-11100

apartment bulding income...7220

Less: employer share of taxes..-1251

alimony deduction.............-6000

AGI...................28984

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