Alex, single, earns wags of $42,000 in 2021. He also conducts an activity that produces the following revenues and expenses: Revenues $18,000 Expenses Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Cost Recovery 8,000 Alex also pays mortgage interest during the year of $8,000. 1. Assuming the activity is a business, Alex' 2021 AGI is $ and his taxable income is $ 2. Assuming the activity is NOT a business, Alex' 2021 AGI is $ and his taxable income is $

Alex, single, earns wags of $42,000 in 2021. He also conducts an activity that produces the following revenues and expenses: Revenues $18,000 Expenses Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Cost Recovery 8,000 Alex also pays mortgage interest during the year of $8,000. 1. Assuming the activity is a business, Alex' 2021 AGI is $ and his taxable income is $ 2. Assuming the activity is NOT a business, Alex' 2021 AGI is $ and his taxable income is $

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 77P: During the last five months of the year, Dwana opens a new Internet telecommunications business...

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