Terry and Jim Are Both Involved in Operating Illegal Businesses

question 85

Multiple Choice

Terry and Jim are both involved in operating illegal businesses.Terry operates a gambling business and Jim operates a drug running business.Both businesses have gross revenues of $500,000.The businesses incur the following expenses. Which of the following statements is correct?

• A)Neither Terry nor Jim can deduct any of the above items in calculating the business profit.
• B)Terry should report profit from his business of $250,000.
• C)Jim should report profit from his business of $500,000.
• D)Jim should report profit from his business of $250,000.
• E)None of the above.

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Definitions:

Homophobia

A range of negative attitudes, feelings, or actions directed against homosexuality or people who are perceived as being lesbian, gay, bisexual, or transgender (LGBT).

Gender

A social and cultural construct related to behaviors, roles, expectations, and identities that societies assign to individuals based on perceived biological sex.

Sociologist

An expert in or student of sociology, which is the study of the development, structure, and functioning of human society.

Hegemonic

Relating to or denoting the domination of one social group or nation over others, often manifesting in cultural, economic, or political influence.