Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. Determine Betty's AGI and complete page 1 of Form 1040 for Betty. You may assume that Betty will owe $2,502 in self-employment tax on her salon income.
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Interest income
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$11,255
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Salon sales and revenue
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86,360
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Salaries paid to beauticians
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45,250
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Beauty salon supplies
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23,400
|
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Alimony paid to her ex-husband, Rocky
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6,000
|
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Rental revenue from apartment building
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31,220
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Depreciation on apartment building
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12,900
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Real estate taxes paid on apartment building
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11,100
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Real estate taxes paid on personal residence
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6,241
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Contributions to charity
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4,237
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