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:

Chi-square Test

A statistical test used to determine if there is a significant difference between the expected frequencies and the observed frequencies in one or more categories of a contingency table.

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The geographical setting or environment in which a college or university is situated.

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A social construct that refers to roles, behaviors, activities, expectations, and identities that societies consider appropriate for men, women, and other gender identities.

Tuition Increase

The rise in the cost of attending classes and receiving education services at institutions such as colleges and universities.