Question

carlos is self-employed. during the year, he had the following business income and expenses. what is his gross income for the tax year?income $16,050cost of goods sold $5,000advertising $1,000legal and professional fees $280office expense $125supplies $310business license $100utilities $420

Answer 1

Carlos's gross income for the tax year is $8,815.

Step-by-step explanation:

To calculate Carlos's gross income for the tax year, we need to add up his business income and subtract his business expenses.

In this case, his business income is $16,050 and his business expenses are $5,000 (cost of goods sold), $1,000 (advertising), $280 (legal and professional fees), $125 (office expense), $310 (supplies), $100 (business license), and $420 (utilities).

So, to find his gross income, we subtract the sum of his business expenses from his business income:

Gross Income = Business Income - Business Expenses

Gross Income = $16,050 - ($5,000 + $1,000 + $280 + $125 + $310 + $100 + $420)

Gross Income = $16,050 - $7,235

Gross Income = $8,815