Question

In: Accounting

4 Bea, a cash basis taxpayer, operates a small retail store. Her books show the following...

4 Bea, a cash basis taxpayer, operates a small retail store. Her books show the following income items for the year:

Sales – paid, $72,000.

Sales – unpaid, $3,500.

Sale of cardboard packaging to recycling company, $2,500.

What does Bea report as her gross income on her Schedule C?

Solutions

Expert Solution

Solution: - Gross income reported by Arthur on Schedule C = $ 74,500.

Explanation:

Gross income reported by Arthur on Schedule C = Sales paid + Sale of cardboard packaging to recycling company.

                                                                                    =$ 72,000 + $ 2500

                                                                                    = $ 74,500.

ekkarill92 answered 1 year ago
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