Charlie Is Single and Operates His Barber Shop as a Sole

question 73

Multiple Choice

Charlie is single and operates his barber shop as a sole proprietorship. During the current year, Charlie paid $2,200 for his personal health insurance plan and $4,000 for health insurance for his employees. How much of these premiums can be deducted for Charlie's adjusted gross income?

• A)$- 0 -
• B)$2.200
• C)$4,000
• D)$5,100
• E)$6,200

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Definitions:

Asset Cost

The total amount invested to acquire, produce, or improve a tangible or intangible asset, utilized for accounting and tax purposes.

Lease-Purchase Analysis

A financial evaluation technique used to determine the most cost-effective option between leasing an asset and purchasing it outright.

Sale and Leaseback

A financial transaction where one sells an asset and leases it back for the long-term; thus, one continues to be able to use the asset but does not own it.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and equity.