Mike Is a Self-Employed TV Technician

question 32

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 1998 for $8,200.Mike is single,has no dependents,and claims the standard deduction.What is his 2010 taxable income? (Ignore the self-employment tax deduction. )

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Definitions:

Incessantly

Continuing without interruption; unending, often in an annoying or undesired way.

Composition

A term referring to the arrangement or makeup of something's parts or elements, often used in contexts ranging from music to writing, and to the chemical makeup of substances.

Maladaptation

Behavior or traits that are counterproductive to an individual's well-being or survival in a particular environment.