Question

3.       Dana, who around the city is generally referred to simply as "The Dane," runs an illegal gambling joint.   Here are her income and expenses.   Calculate her net taxable income from the gambling joint.

Gross Income/Sales                                                    $300,000

Expenses

            Rent                                                                $30,000

            Maintenance and Cleaning                             $6,000

            Bribes to police and inspectors                      $20,000                                  

            Supplies                                                          $4,000

            Food and drink costs                                      $15,000

            Accounting and Legal                                     $10,000

            Fines and penalties paid                                 $8,000

            Depreciation                                                   $10,000

Answer 1

Ansioor alculahon Net taxable Thcome, The Dane 300000 Y Sales Gross Income l ess Eepenses 30000 Rent $ COOO Maintenance and cleaning Brile to poiice Thspetor suppiies forod d dmnk (ost 20000 4000 4¢ $ looo0 Acceniny and legal fnesd fenalHes pald Pepreciahon 3oo0 10000 1os7000 Net Probit

Compulation tareable Theeme Nel Profid cy Par $ 197000 Profd Adling Back esepenfos Brile to Poice d Theclor Fines feraletes paid 20000 4¢ Z000 २२००० Net Taxalle Ih rome

34012 Ihlome Indlan lau dax Ack disalioure d de 95 Per 1961 ay fer fine as Penaloaties hehte erefend tiune ul we dialtased dha eependdire hex Computing have tenable Fhcome AS Per Section 37C12 Thcome tan AL 1961 a Theuam iao Govindment employees the disallouwatle ependtiune dlsaowed Aarable 1/ Brile pai'ef It is 1 d0 have Hence we the expendltlure for Computing Thcome