Patricia professional gambler had following income expenses in her business:
Gambling Winning---- $275000
Expenses
Fees paid for illegal information---$18000
travel costs------$8000
office expenses ------ $ 5000
supplies------$3000
Business long dist. phone charge--- $1000
Tickets for illegal parking ---- $900
how much net income Patricia reported from the business
A. $0
b. $239100
c. $240000
d. 258000
258,000
To calculate the net income Patricia reported from her business, we need to subtract her expenses from her gambling winnings.
First, let's add up all the expenses:
Fees paid for illegal information: $18,000
Travel costs: $8,000
Office expenses: $5,000
Supplies: $3,000
Business long-distance phone charge: $1,000
Tickets for illegal parking: $900
Total Expenses: $18,000 + $8,000 + $5,000 + $3,000 + $1,000 + $900 = $36,900
Now, we can calculate the net income by subtracting the total expenses from the gambling winnings:
Net Income = Gambling Winnings - Total Expenses
Net Income = $275,000 - $36,900
Net Income = $238,100
Therefore, Patricia reported a net income of $238,100 from her business.
The correct option is:
b. $239,100