contestada

A cash-basis sole proprietor had the following cash receipts and disbursement for the year: Net sales - $80,000 Cost of goods sold - $40,000 Operating expenses - $20,000 Employee payroll taxes - $3,000 Dividend income - $900 Interest income from a personal savings account $200 What is the amount of reported net profit reported on Schedule C

Respuesta :

hyderali230

Answer:

Net Income is $17,000

Explanation:

A sole proprietor is not taxed as a business entity but all the income and expenses should be reported on the income tax return. On schedule C all the details of profit and loss should be submitted with Form 1040.

Net profit calculation to report on Schedule C is as follow:

Net sales -                          $80,000

Cost of goods sold           ($40,000)

Gross Income                    $40,000

Operating expenses        ($20,000)

Operating Income             $20,000

Employee payroll taxes   ($3,000)

Net Income                       $17,000

Otras preguntas