Mike Is a Self-Employed TV Technician

question 46

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 2012 for $8,200.Mike is single,has no dependents,and claims the standard deduction.What is his 2016 taxable income? (Ignore the self-employment tax deduction. )

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Definitions:

Genitalia

The external and internal sex organs that are involved in sexual reproduction and function.

Unambiguous

Something that is clear and precise, leaving no room for doubt or confusion.

Optimal Gender

The most favorable or desirable expression or identity of gender for an individual, where they feel most comfortable and true to themselves.

Physicians

Medical professionals who diagnose and treat illnesses, prescribe medication, and provide health advice and care.