In the Current Year, Johnice Started a Profitable Bookkeeping Business

question 100

Multiple Choice

In the current year, Johnice started a profitable bookkeeping business as a sole proprietor. Johnice made $38,000 in her first year of operation. What two forms must Johnice file for her business?

• A)Schedules A and C
• B)Schedules D and E
• C)Schedule SE and C
• D)Schedules B and C
• E)None of these

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Definitions:

Assets

Economic resources owned or controlled by an individual or a business, which are expected to provide future benefits.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Distorting Tax

A tax that alters the economic behavior of individuals and businesses from what they would have chosen in the absence of the tax.

Economic Welfare

The overall well-being of individuals and societies, often assessed by factors such as wealth, health, and happiness.