Question

A real estate broker reported the following business income and expenses for the current year: Commission income Expenses: Auto rentals Referral fees to other brokers (legal under state law) Referral fees to nonbrokers (illegal under state law) Parking fines $100,000 2,000 20,000 8,000 200 What amount should be reported as net profit on Schedule C, Profit or Loss from Business? ? ?. $69,800 O ?. $70,000 OC. $77,800 OD. $78,000

          A real estate broker reported the following business income and expenses for the current year:
Commission income
Expenses:
Auto rentals
Referral fees to other brokers (legal under state law)
Referral fees to nonbrokers (illegal under state law)
Parking fines
$100,000
2,000
20,000
8,000
200
What amount should be reported as net profit on Schedule C, Profit or Loss from Business?
? ?. $69,800
O ?. $70,000
OC. $77,800
OD. $78,000

A real estate broker reported the following business income and expenses for the current year:
Commission income
Expenses:
Auto rentals
Referral fees to other brokers (legal under state law)
Referral fees to nonbrokers (illegal under state law)
Parking fines
100,000
2,000
20,000
8,000
200
What amount should be reported as net profit on Schedule C, Profit or Loss from Business?
? ?.69,800
O ?. 70,000
OC.77,800
OD. 78,000

Added by Jessica L.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Vishal Parmar

03/08/2022

Step 1

Step 1: Calculate the total expenses: 2,000 + 20,000 + 8,000 + 200 = $30,200 Show more…

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A real estate broker reported the following business income and expenses for the current year: Commission income $100,000 Expenses: Auto rentals 2,000 Referral fees to other brokers (legal under state law) 20,000 Referral fees to nonbrokers (illegal under state law) 8,000 Parking fines 200 What amount should be reported as net profit on Schedule C, Profit or Loss from Business? A. $69,800 B. $70,000 C. $77,800 D. $78,000