Mike Is a Self-Employed TV Technician

question 114

Essay

Mike is a self-employed TV technician.He is usually paid as soon as he completes repairs,but occasionally bills a customer with payment expected within 30 days.At the end of the year he has $2,500 of receivables outstanding.He expects to collect $1,200 of this and write off the remainder.Mike is a cash basis taxpayer and had net earnings from his business (not including the effect of the items above) of $55,000.He also had $3,500 interest income,$200 gambling winnings,and sold corporate stock for $7,000.The stock had been purchased in 2011 for $8,200.Mike is single,has no dependents,and claims the standard deduction.What is his 2015 taxable income? (Ignore the self-employment tax deduction. )

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Definitions:

Human Papillomavirus (HPV)

A group of viruses that can cause genital warts and are associated with several cancers, including cervical cancer.

Cervical Cancer

A type of cancer that occurs in the cells of the cervix — the lower part of the uterus that connects to the vagina.

Oral Cancer

A type of cancer that develops in the tissues of the mouth or throat, often linked to tobacco use, heavy alcohol use, or the presence of human papillomavirus infection.

Dietary Nutrients

Essential chemical compounds found in food that the body needs to function properly, including vitamins, minerals, proteins, carbs, and fats.