Randolph Scott Operates a Business as a Sole Proprietorship

question 99

Multiple Choice

Randolph Scott operates a business as a sole proprietorship.This year his net profit was $10,570.For tax purposes this amount should be reported on:

• A)Schedule C,Statement of Profit or Loss from Business
• B)The first page of Form 1040 as other income
• C)A separate tax return prepared for the business operation
• D)Schedule E,Statement of Rent and Royalty Income

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Definitions:

Eligibility

Refers to the suitability or qualifications required to be selected or to participate in something, often used in contexts of programs, benefits, or competitions.

Liability Insurance Policy

A financial product that provides the insured party with protection against claims resulting from injuries and damage to people and/or property.

Insurable Interest

The stake or financial interest an individual or entity has in the potential loss of something insured, ensuring they suffer a direct loss if an insured event occurs.

Good Faith

A sincere intention to deal fairly with others without any intention to deceive or commit fraud.