Jordan Is the Sole Proprietor of Adams Company That Reported

question 25

Multiple Choice

Jordan is the sole proprietor of Adams Company that reported net income of $57,000 for the year.During the year he withdrew $11,000 from the business for personal use.Jordan is in the 25% marginal tax bracket.How much income from the above must Jordan include in his taxable income for the year?

• A)$68,000
• B)$57,000
• C)$14,250
• D)$11,000

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Definitions:

Organizations

Entities that are structured and managed to meet a particular objective or set of objectives, which can include corporations, non-profits, and governmental bodies.

Reputation

The general perception or opinion of the public or a specific group about an individual, organization, or entity.

Proactive Firms

Businesses that anticipate and act on future needs or changes, rather than reacting to events after they happen.

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in maintaining the activity.