Judy,a Single Individual,reports the Following Items of Income and Loss $\begin{array}{lccc} \text { salary } & \$ 120,000\\ \text { Loss Fromrental property } & ( 40,000 )\end{array}$

question 47

Essay

Judy,a single individual,reports the following items of income and loss:
$\begin{array}{lccc} \text { salary } & \$ 120,000\\ \text { Loss Fromrental property } & ( 40,000 )\end{array}$
Judy owns 100% of the rental property and actively participates in the rental of the property.Calculate Judy's AGI.

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Definitions:

Adjusting Entries

These are journal entries made in an accounting system to update account balances prior to preparing financial statements, ensuring that all revenues and expenses are recorded in the appropriate periods.

Work Sheet

An informal financial statement usually used internally to prepare financial statements and support accounting operations.

General Journal

The primary accounting record used to record all transactions in chronological order, including both debit and credit accounts.

Work Sheet

An internal document used by accountants to compile and analyze the accounts before preparing financial statements.