Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:Roger, an individual, owns a proprietorship called Green Thing. In the current year, Roger has the following items:
Business income $200,000
Business expense $150,000
Loss on a completely destroyed business machine. The machine had an adjusted basis of $25,000 and a fair market value of $20,000 before destroyed. The machine was not insured.
Loss on a business truck. The truck had an adjusted basis of $8,000. The repairs to fix the truck cost $10,000. He did not claim the loss from insurance company.
Determine Roger's net business income.
O A. $47,000
O B. $30,000
O C. $22,000
O D. $17,000
O E. $15,000
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