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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 64DNC

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Question

John has just started a new engineering business, where he maintains
lifts. He does not provide any materials, just his own labour. He could not
afford to buy a van, so he rents one at a cost of £300 per week. Each time
he does a repair call-out, he earns a standard fee of £140 and he
estimates the average fuel cost of each repair at £19. Assuming no other
costs, how much does John have to earn each week to break even?
A) 140
B) 647
C) 347
D) 300

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