David Purchased a Deli Shop on February 1ˢᵗ of Last

question 30

Essay

David purchased a deli shop on February 1ˢᵗ of last year and began to operate it as a sole proprietorship. David reports his personal taxes using the cash method over a calendar year, and he wants to use the cash method and fiscal year for his sole proprietorship. He has summarized his receipts and expenses through January 31ˢᵗ of this year as follows:

What income should David report from his sole proprietorship?

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Definitions:

Irrational Process

Mental activities beyond logical reasoning, often influenced by emotions or subconscious thoughts.

Activating Event

In cognitive-behavioral therapy, an external situation or internal mental event that triggers a chain of thoughts, emotions, and behaviors.

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Eustress

A positive form of stress that is perceived as beneficial, motivating, or enhancing to one's functioning.