Charles Is a Single Person,age 35,with No Dependents

question 61

Multiple Choice

Charles is a single person,age 35,with no dependents.In 2019,Charles has gross income of $75,000 from his sole proprietorship.Charles also incurs $80,000 of deductible business expenses in connection with his proprietorship.He has interest and dividend income of $22,000.Charles has $7,000 of itemized deductions.Charles's taxable income is

• A)$4,800.
• B)$10,000.
• C)$17,000.
• D)none of the above.

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Definitions:

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Corporate Capital

Funds and resources that a corporation utilizes for operations, growth, and to undertake new projects, including both equity and debt capital.

Partners' Equity

The total interest or claim that all partners have in the net assets of a partnership.

Market Price

The present value at which a service or asset is available for purchase or sale in the marketplace.