Kim's Sole Proprietorship Consists of a Bakery and Retail Food

question 33

Multiple Choice

Kim's sole proprietorship consists of a bakery and retail food sales. The bakery's DPGR is $700,000, but after CGS, direct expenses, and a ratable portion of indirect expenses are deducted, QPAI is $100,000. W-2 wages related to DPGR are significant. The retail food sales have a loss of $900,000. If Kim files a joint return and her modified AGI is $119,500, what is her allowable DPAD, if any, for 2014?

• A) None
• B) $6,000
• C) $7,170
• D) $9,000
• E) Some other amount

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Definitions:

Sadness

An emotion characterized by feelings of disappointment, loss, or helplessness, often viewed as a more temporary and milder form of distress compared to depression.

Triple-masked

A study design where information is withheld from participants, experimenters, and evaluators to prevent bias; triple-blind is a more common term.

Evaluating

The process of assessing or examining something to determine its value, quality, importance, size, or other measurable characteristics.

Mood

A temporary state of mind or feeling that influences an individual's emotional state.