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31 December, 00:59

Patricia, a professional gambler, had the following income and expenses in her business: Gambling winnings$275,000Expenses Fees paid for illegal information 18,000Travel costs$8,000Office expenses 5,000Supplies 3,000Business long-distance phone charges 1,000Tickets for illegal parking 900How much net income must Patricia report from this business?

A. $239,100.

B. $240,000.

C. $258,000.

D. $0.

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Answers (1)
  1. 31 December, 03:35
    0
    C. $258,000.

    Explanation:

    The computation of the net income reported is shown below:

    = Gambling winnings - Travel costs - Office expenses - Supplies - Business long-distance phone charges

    = $275,000 - $8,000 - $5,000 - $3,000 - $1,000

    = $258,000

    For computing this we ignored the illegal cost related to the illegal parking and the illegal information
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