Alexandra Operates a Garage as a Sole Proprietorship

question 3

Short Answer

Alexandra operates a garage as a sole proprietorship. Alexandra also owns a half interest in a partnership that operates a gas station. This year Alexandra paid or reported the following expenses related to her garage and other property. Determine Alexandra's AGI for 2014. $\begin{array}{llcc} \text {Revenue from auto repairs } & \$143,930\\ \text { Salaries paid to mechanics} &72,210\\ \text { Supplies and tools } &18,500\\ \text { Revenues from gas station partnership (Alexandra's share) } &125,000\\ \text { Expenses from gas station partnership (Alexandra's share) } &95,200\\ \text { Self-employment tax ( 1 / 2 is employer's share} &12,702\\\end{array}$

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Definitions:

Equity Offering

The issuance of new shares by a company to the public or to institutional investors to raise capital.

Secondary Markets

Markets where securities are traded after being initially offered or sold in the primary market.

Stock Market Transaction

A financial operation such as buying, selling, or trading stocks that takes place in the stock market.

Local Broker

A brokerage firm that operates in a specific geographic area and may specialize in trading securities for local clients.