Question

Beverly, a real estate broker, had the following income and expenses in her business: Commission income $160,000 Expenses: Bribes paid to city officials (illegal under state law) 30,000 Referral fees paid (not illegal) 11,000 Travel and transportation 6,000 Supplies 5,000 Office and phone 4,000 Parking tickets/fines 1,500 How much net income must Beverly report from her business? Group of answer choices $134,000 $104,000 $102,500 $132,500

Answer 1

$134,000

Step-by-step explanation:

Calculation to determine How much net income must Beverly report from her business

Commission income $160,000

Less Expenses:

Commissions to other brokers$11,000

Travel and transportation $6,000

Supplies $5,000

Office and phone$4000

Net income $134,000

Therefore the amount of net income that Beverly must report from her business is $134,000