Ray owns a Chocolate store as a sole proprietor. In 2021, sales revenue equaled $100,000. The business had the following expenses in 2021: $2,000 of advertising, $15,000 of supplies, and $1,500 of insurance. Ray also incurred the following expenses related to the bakery. He traveled to a bakery convention strictly for business purposes. He spent $500 on airfare, $200 on hotels, and $300 on meals. He also incurred $400 of expenses related to entertaining clients of the bakery and a $100 fine for not paying his taxes on time. What is Ray's adjusted gross income for 2021?

Ray owns a Chocolate store as a sole proprietor. In 2021, sales revenue equaled $100,000. The business had the following expenses in 2021: $2,000 of advertising, $15,000 of supplies, and $1,500 of insurance. Ray also incurred the following expenses related to the bakery. He traveled to a bakery convention strictly for business purposes. He spent $500 on airfare, $200 on hotels, and $300 on meals. He also incurred $400 of expenses related to entertaining clients of the bakery and a $100 fine for not paying his taxes on time. What is Ray's adjusted gross income for 2021?

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 58P

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