Question

Check my wc Required information [The following information applies to the questions displayed below) Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2020, Betty had the following income and expenses. You may assume that Betty will owe $2,604 in self-employment tax on her salon income, with $1,302 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016 and that Betty itemizes her deductions this year. Interest income Salon sales and revenue Salaries paid to beauticians Beauty salon supplies Alimony paid to her ex-husband, cky 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 $ 14,355 88,360 46,330 23,600 7,000 34,820 13,900 11,90 6,821 4,897

Answer 1

Interest income		14355
Salon revenue	88360
Less; salary paid to beauticians	(46330)
Less; beauty salon supplies	(23600)
Operating income from salon		18430
Apartment building revenue	34820
Less; Depreciation on apartment building	(13900)
Less;Real estate taxes on apartment building	(11900)
Apartment building income		9020
Less; self employment tax		(1302)
Less; Alimony		(6000)
AGI		34503

Belly owe $ 2604 in self employment tax on her salon income

Of this $ 1302 would be deductible as a for AGI deduction

Assume that the apartment building amounts represent Betty's interest and not the total amount.