Question

Smith operates a roof repair business. This year Smith's business generated cash receipts of $33,515 and Smith made the following expenditures associated with his business: (8 00:38 Advertising Car and truck expenses Depreciation Employee compensation Education $ 580 1,296 3,240 5.400 2,600 The education expense was for a two week, nighttime course in business management, Smith believes the expenditure should quality as an ordinary and necessary business expense. What net income should Smith report from his business? Smith is on the cash method and calendar year Essay Toot ation BIS EX .E. AA.

Answer 1

Given data, . Advertising $580 Car and trucks expenses 1296 Depreciation 3240 employee compensation 5400 Education 2600 posticulars | 33515 Cash receipts Expenses Advertising Depre cicetion car & trucks expenses employee compensation Education : SSO 32:40 1296 540D 2600 13116 Net income 2039 This from his business should be smith sepost Net income. 20 399.