Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2023, Rocco had the following income and expenses. You may assume that Rocco will owe $2,516 in self-employment tax on his salon income, with $1,258 representing the employer portion of the self-employment tax. You may also assume that his divorce from Svetlana was finalized in 2016. Interest income Salon sales and revenue Salaries paid to beauticians Beauty salon supplies Alimony paid to his ex-wife, Svetlana Rental revenue from apartment building Depreciation on apartment building Real estate taxes paid on apartment building Real estate taxes paid on personal residence Contributions to charity a. Determine Rocco's AGI. Note: Amounts to be deducted should be indicated by a minus sign. $ 11,565 86,560 45,330 23,420 6,100 31,580 13,000 11,180 6,299 4,303

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 51P
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Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2023, Rocco
had the following income and expenses. You may assume that Rocco will owe $2,516 in self-employment tax on his salon
income, with $1,258 representing the employer portion of the self-employment tax. You may also assume that his divorce
from Svetlana was finalized in 2016.
Interest income
Salon sales and revenue
Salaries paid to beauticians
Beauty salon supplies
Alimony paid to his ex-wife, Svetlana
Rental revenue from apartment building
Depreciation on apartment building
Real estate taxes paid on apartment building
Real estate taxes paid on personal residence
Contributions to charity
a. Determine Rocco's AGI.
Note: Amounts to be deducted should be indicated by a minus sign.
Interest income
Salon revenue
Less: Salaries paid to beauticians
‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒
Operating income from salon
Apartment building revenue
Apartment building income
AGI
$ 11,565
86,560
45,330
23,420
6,100
31,580
13,000
11,180
6,299
4,303
Transcribed Image Text:Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2023, Rocco had the following income and expenses. You may assume that Rocco will owe $2,516 in self-employment tax on his salon income, with $1,258 representing the employer portion of the self-employment tax. You may also assume that his divorce from Svetlana was finalized in 2016. Interest income Salon sales and revenue Salaries paid to beauticians Beauty salon supplies Alimony paid to his ex-wife, Svetlana Rental revenue from apartment building Depreciation on apartment building Real estate taxes paid on apartment building Real estate taxes paid on personal residence Contributions to charity a. Determine Rocco's AGI. Note: Amounts to be deducted should be indicated by a minus sign. Interest income Salon revenue Less: Salaries paid to beauticians ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ Operating income from salon Apartment building revenue Apartment building income AGI $ 11,565 86,560 45,330 23,420 6,100 31,580 13,000 11,180 6,299 4,303
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