Question

juan is self-employed. during the tax year, he had the following income and expenses:gross receipts: $80,000advertising: $1,000office expense: $300rent: $10,000liability insurance: $3,000bookkeeping fees: $500utilities: $2,000business meals purchased at restaurants: $1,000what is juan's net profit (or loss) for the tax year?

Answer 1

To calculate Juan's net profit (or loss) for the tax year, subtract his expenses from his gross receipts. Net profit (or loss) = $62,200.

Step-by-step explanation:

To calculate Juan's net profit (or loss) for the tax year, we need to subtract his expenses from his gross receipts.

Gross receipts: $80,000

Expenses:

Advertising: $1,000

Office expense: $300

Rent: $10,000

Liability insurance: $3,000

Bookkeeping fees: $500

Utilities: $2,000

Business meals purchased at restaurants: $1,000

Total expenses: $17,800

Net profit (or loss) = Gross receipts - Total expenses

Net profit (or loss) = $80,000 - $17,800

Net profit (or loss) = $62,200