Final answer:
Susan's excess business loss for 2019 is calculated by subtracting her gross income from her deductions, which equals $340,000.
Step-by-step explanation:
The question is asking to calculate Susan's excess business loss for the year 2019. According to the provided details, Susan has a gross income of $290,000 and deductions amounting to $630,000. To calculate the excess business loss, we subtract the gross income from the deductions.
Therefore, the calculation would be $630,000 (deductions) - $290,000 (gross income) = $340,000. This indicates that Susan's excess business loss for the year 2019 is $340,000.
A sole proprietorship is a business structure in which an individual operates the business as the sole owner. In this case, Susan operates her business as a sole proprietorship. To determine the excess business loss for 2019, we need to calculate the net income from her business.
Net income is calculated by subtracting the deductions from the gross income. In this case, the net income would be $290,000 - $630,000 = -$340,000. Since the net income is negative, it indicates an excess business loss.
Therefore, the correct answer is (a) $340,000.